»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp general rule is that a UK property loss cannot be carried forward to an accounting period after the UK property income business ceases (CTA10/S62(4)(b)). However, where:

• the loss would have been carried forward if the UK property business hadn't ceased, and

• the company has an investment business that continues in the next accounting period,

the loss may be carried forward to the next accounting period and deducted as a management expense under CTA09/S1219.

A claim is required before relief is allowed against the company's total profits of the next accounting period.

From 1 April 2017, the priority rule in s1219(1A) no longer applies in relation to management expenses carried forward in these circumstances so that it is not necessary to allow a deduction for carried-forward management expenses before other deductions from total profits (CTA10/S63(7)).

Claims

A company must make a claim to set:

• carried-forward UK property business losses against total profits, or

• UK property business losses carried forward as management expenses against total profits.

»Ê¹ÚÌåÓýapp claim can be for the whole or part of the loss or expense.

»Ê¹ÚÌåÓýapp claim must be made within 2 years of the end of the period in which the company wishes to utilise the loss or such further period as HMRC allows (CTA10/S62(5A) - (5D), CTA10/S63(4) - (6)).