rental lossesall of the rental activities of an individual acting in the same capacity are aggregated so that all rental income and related expenses are pooled. As such, losses on an individual property are automatically set against profits arising on other properties in the same tax year. If there is still an overall loss, it is carried forward and set off against the first available net rental income of subsequent years.
The position for companies is more generous as a net loss can be set off against any other profits of the same accounting period. If there is still an unused loss, it is carried forward and set against any profits of subsequent accounting periods for as long as the rental activities continue. Alternatively, if the company is a member of a group, the losses can be surrendered as group relief