Personal Tax- Property loss (capital allowance) use against Other Income + Offset against Total income
Article ID
personal-tax-property-loss-capital-allowance-use-against-other-income
Article Name
Personal Tax- Property loss (capital allowance) use against Other Income + Offset against Total income
Created Date
18th January 2023
Product
Problem
IRIS Personal Tax- Property loss (capital allowance) and need to use against Other income + Losses Offset against Total income
Resolution
Property losses cannot be offset against other income unless the losses have been created by capital allowances.
Property losses can only be offset against other income PRE 2012. If the losses are not as a result of capital allowances or from a FHL the system will ignore the request and carry forward the losses to the following year.
If you have capital allowances enter the loss value here under the UK Property Losses: Offset against total income OR Offset against UK FHL profits
Losses Offset against Total income (Allowance value changing on Tax comp)
PT will warn you (image below) if you enter a value here IF it exceeds the losses (Note that Other Brought Forward Losses are automatically used and appears on the Tax comp as relief) and the value entered will also be added onto allowances of the Tax comp (at the very bottom table)
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