Offsetting non payments of rent

[Bobby Rae]

Good evening everyone

I have just evicted a tenant who did not pay rent. Therefore i have a number of months of non payment, as well as the various fees such as solicitors.
Does anyone know if i can use these losses to offset against my income with regards to the amount of tax I pay? Or is it the case that i can only offset it against future rental income?

Many thanks in advance

Bobby

[Tax Accountant]

Hi Bobby,

You could offset trading losses against other income but not the other way around. Income from property (this is the correct title) losses could only be carried forward and offset against the first available income from property of later years.

Furnishings wear and tear allowance is claimable at 10% of the gross rent.Therefore, you should include in your rental accounts the gross rents receivable under the tenancy agreement and then deduct non-received rent as bad debt rather than include only the net rents received.

Ramnik

[Nora Kay]

Karongo
Have you actually got away with doing this on a tax return? I would have thought the tax office would then smartly deduct 10% from the bad debt!