Losses of a property business are calculated in the same way as profits.

(ITTOIA 2005, s. 272(2), applying ITTOIA 2005, s. 26: see ¶300-050).

A ‘loss’ (or surplus of expense over income) on a particular property will – subject to the special rules for furnished holiday lettings, below – automatically be set against ‘profits’ (surplus of income over expenses) on any other properties in the same period and in the same property business (that is, in the UK property business if the loss-making property is in the UK, or in the overseas property business if the loss-making property is overseas).

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