UK property & Overseas property - offset tax?

[Sue]

I have a UK property on which I make very little profit. I also have a holiday property in France which is let for about 4 weeks a year and makes a loss after deduction of usual expenses i.e. mortgage interest/management fees/utilities etc.

Can I offset the tax on the profit of the UK property against the loss of the holiday property?

Thanks

[Tax Accountant]

I have a UK property on which I make very little profit. I also have a holiday property in France which is let for about 4 weeks a year and makes a loss after deduction of usual expenses i.e. mortgage interest/management fees/utilities etc.

Can I offset the tax on the profit of the UK property against the loss of the holiday property?

Thanks

You say that you let the French property for only 4 weeks a year. If so, you could claim expenses of only 4 weeks a year and not expenses of the whole year in calculating whether you have made any profit or loss on the letting of your foreign property.

Even if you were letting your French property on a commercial basis for the whole year, I do not believe that you could offset loss on a foreign rental against any profit on a UK rental.

On another note, have you considered the possibility of nominating your French Home as your ''only or main residence'' for Capital Gains Tax Private Residence Relief (PPR relief) purposes?

Ramnik