The guidance that follows only applies to tax year 2010-11 and earlier. Please see PIM4120 for 2011-12 and later.


If a customer had a loss on furnished holiday lettings and a profit on other rental income, the loss would normally be relieved in the overall calculation of rental business profits. However, the landlord could claim relief for the loss separately against:

general income, which could result in relief at an earlier time than if the loss were absorbed in the rental business computation (IT cases),

total profits (CT cases),

Capital Gains Tax (IT cases).

If a claim was made look under the ‘other guidance’ heading below.

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