UK property business - losses
Enter here the UK property business loss brought forward from earlier years, as well as details of the allocation of any current period loss.
We’ve made changes to accommodate the requirements of Finance (No. 2) Act 2017. Depending on when your company periods land, you’ll notice differences in the available fields on the Losses tab.
You can now enter group relief surrendered for company periods commencing on or after April 2019.
Brought Forward Loss (Periods commencing before April 2017)
Enter at Brought Forward Loss the UK property business loss incurred in earlier periods and brought forward to this period. These losses are treated as current period UK property losses and, where possible, utilised against current period total profits of the company.
Brought Forward Loss (Periods commencing on or after April 2017)
For periods starting on or after 1 April 2017, you’ll need to apportion the losses.
| Brought forward loss | Enter the UK property business loss incurred in earlier periods and brought forward to this period. |
| Set against total profits | An election must be made to set brought forward UK property business losses against total profits of the company. |
| Group relief surrendered (periods commencing on or after 1 April 2019) | Enter the amount of brought forward property losses surrendered. A company cannot surrender a brought forward loss if it has capacity to use the loss against its own profits. |
| Carried forward | Any brought forward UK property loss not used against total profits of the period, will be carried forward to the next period. |
For periods commencing on 1 April 2017 only those fields associated with losses arising before 1 April 2017 will be available.
Current Year Loss (Periods ending before 1 April 2017)
| Loss arising in period | If the company has an adjusted UK property loss for the current period, then the amount of the loss will appear here. The figure is the adjusted UK property loss calculated at UK Property Business – Adjustments. |
| Current period loss set against total profits |
UK property income losses must, where possible, be allocated against total profits of the company for the same period. This figure shows the amount of the current period loss that has been allocated. It is calculated as the lower of:
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| Carried forward | Calculated as the loss arising in the period, less the current period loss set off against total profits. |
Current Period Loss (Periods ending on or after 1 April 2017)
| Loss arising in period | If the company has an adjusted UK property loss for the current period, then the amount of the loss will appear here. The figure is the adjusted UK property loss calculated at UK Property Business – Adjustments. | |
| Set against total profits |
UK property income losses must, where possible, be allocated against the total profits of the company for the same period. This figure shows the amount of the current period loss that has been allocated. It is calculated as the lower of:
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| Maximum available for group relief (periods commencing on or after 1 April 2019) | Enter the maximum amount of property losses available for surrender as group relief. UK Property Business losses eligible for group relief can only be surrendered to the extent that they exceed the company's gross profits of the surrender period. |
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| Group relief surrendered (periods commencing on or after 1 April 2019) | Enter the amount of property losses surrendered. | |
| Carried forward | Calculated as the loss arising in the period, less the current period loss set off against total profits. |
Loss extinguished on cessation
For periods ending on or after 1 April 2017 this section will no longer be available, instead losses extinguished on cessation will be included in the Total Carried Forward section.
If you have entered a cessation date falling within the current period at UK Property Business Commencement and Cessation, on Non-financial information – Company Information, then Loss extinguished on cessation will be calculated as the sum of the losses carried forward from Brought Forward Loss and Current Period Loss.
Current period apportioned losses
Periods straddling 1 April 2017 are treated as two accounting periods in respect of profits and losses. The current period loss carried forward is time-apportioned. Where just and reasonable the apportionment can be adjusted.
Total carried forward
Calculated as the sum of the losses carried forward from Brought Forward Loss and Current Period Loss, less Loss Extinguished on Cessation.