Property rental business loss relief claim

Individuals, including members of business partnerships, can claim a deduction in the tax liability on general income where their property rental business has made a loss and all or part of that loss results from capital allowances.

Amount of loss relief

Property business loss relief is limited to the lessor of the:

• capital allowances claimed; and
• amount of the loss.

Profits and losses from all properties must be aggregated and only if there’s an overall loss can relief be claimed against other income. UK let property and overseas let property are treated as separate businesses.

How to claim relief

Property-related loss relief can be claimed against an income tax liability for the same year as the loss arises or the following one. A claim must be made in writing either with your tax return or separately no later than the 31 January in the year following that in which the loss was made. For example, a claim to set a 2022/23 loss against tax on your other income for either 2022/23 or 2023/24 must reach HMRC no later than 31 January 2025.