If the person carrying on the property business (alone or in partnership) does not make a claim for loss relief against general income (see ¶303-220), a UK or overseas property business loss is automatically carried forward to be set against future profits of the same business.

(ITA 2007, s. 118).

The loss is deducted from any profits of the next tax year. If there are no profits in that year, or the profits are not big enough to absorb all the loss, the unrelieved amount is carried forward to the following year and set against profits of that year. The loss can in this way be relieved over the course of several years, being set against available profits as they arise.

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