What can a company do with property losses?

The following Tax practice note provides comprehensive and up to date legal information covering:

  • What can a company do with property losses?
  • Loss relief for UK property business losses
  • Current period loss relief
  • Carry forward loss relief
  • Exclusions from current period and carry forward loss relief
  • Non commercial business
  • Cessation of UK property business
  • UK furnished holiday lettings
  • Overseas property business losses
  • Administration and priority of property losses
  • More...

What can a company do with property losses?

A UK company that has incurred a loss in its UK property business for an accounting period can, in general, use that loss by:

  1. setting it against total profits from the same accounting period, and

  2. to the extent not exhausted, carrying it forward to set it against total profits of future accounting periods, provided the UK property business continues

A UK property business loss can also be surrendered for group relief (for which, see Practice Note: Group relief—types of losses that can be surrendered) or, in respect of an accounting period beginning on or after 1 April 2017, carried-forward and surrendered for group-relief (for which, see Practice Note: Corporation tax loss relief for carried-forward losses—Group relief for carried-forward losses. The priority between using the loss in the loss-making company or surrendering it for group relief is discussed in: Priority between loss reliefs in loss making companies.

A company that has incurred a loss in its overseas property business for an accounting period can, in general, use that loss only by carrying it forward to set it against future profits of its overseas property business.

A property business loss cannot be carried back against profits of a previous accounting period.

Loss relief for UK property business losses

Current period loss relief

A company that has incurred a loss in its UK property business in

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