Rental Loss Ringfencing means that you’ll no longer be able to offset rental losses against other income types (eg. Wages or Business Income) which often resulted in a tax refund.  Instead any loss will be offset against future profits that your rental property makes.  Or if you sell the property, and the bright line rules apply, the loss will reduce the taxable profit.

Whilst this is not yet legislation, we have been advised that it most likely will be by 1 April 2019.

This means if you are planning any rental property maintenance and want to be able to claim it against your current income, that you need to be thinking about doing it now. If you want to know more about this give us a call.

Rental Loss Ring Fencing