Corporation Tax - Rental Losses

CelticStar

I wondered if any of you nice members might help me understand something as I have asked on the Technician board but no one has answered - and my two text books are giving conflicting advice.

I understand that rental losses can be deducted from the current year's PCTCT and then any remainder can be carried forward. But when they are carried forward are they only written off against rental profits in that year or against all profits?

Any help gratefully received.
CelticStar

Ewa Mita

As far as I am aware rental losses can only be set off against rental profits (same type of profits) so if there are no profits from rental this year the losses (plus those brought from last year) have to be carried forward to next year and set off rental profits if there are any.

CelticStar

Thanks Ewa, that's really helpful. :001_smile: