Comply with the law to stay out of hot water Heading into the seasonal…
Inland Revenue has announced an intention to ring fence Losses from Rental Properties- It’s not law yet but is expected to be pushed through from the 2020 Income tax year (After 1 April 2019).
Basically any losses from rental properties will no longer be able to be offset against other income (wages, business income, etc) which has always been a large attraction of purchasing rental properties. They will need to be carried forward until you have a profit from rental property activity and used against that. It’s just a timing thing, but if you sold a rental property before you had used up those losses, you would never get to use them.
We will keep you informed of any developments and how they affect you.