Carried over losses/allowable expenses when selling property

[jonnyw1]

I have a question about allowable expenses that are carried over, too be offset against tax due on income from property rental.

If I have a (single) let property, that gives me an income of £1000 pa. At basic rate tax, that would mean I owe the tax man £200 at the end of each year.

Assume the mortgage interest (and other allowable expenses)comes to £400 per year.

If the property is let for 5 years, and (after offsetting the tax due against them) the allowable expenses were carried over, that would leave £1000 of tax relief towards my my "tax owed pot" at the end of the 5 years.

Say I were to then sell the property (i.e. the only property), would this £1000 relief just be lost into the abyss?

Could it be offset against any CGT due on the sale?
Could it be used/offset against anything else?

[TaxationPete]

Your figures imply you are making a taxable profit of £600 pa so there is nothing to carry forward. If there were losses then these can only be used to offset against future rental gains, not CG or PAYE IT. Regards Peter

[jonnyw1]

Doh!

It was late, and I was tired!

To clarify, the allowable expenses are offset against the entire income (to decide whether/how much tax is payable), and not just offset against the tax due?

Would this mean to pay no tax on a single property that is let, you'd need to either make a loss, or break even?

[Telometer]

To clarify, the allowable expenses are offset against the entire income (to decide whether/how much tax is payable), and not just offset against the tax due?

Would this mean to pay no tax on a single property that is let, you'd need to either make a loss, or break even?

Correct on both fronts.