Property losses – do I need a tax return?

Although you have no property income to tax, you would probably benefit from documenting the losses by submitting a slef-assessment tax return. Having a clear record of the losses will allow you to carry forward the losses and offset them against future profits you make from the property.

Please note, you are obliged to submit a tax return if:

• Your income from the property before deducting any expenses is over £10,000 a year.
• Your income from the proeprty after expenses have been deducted is more than £2,500 a year.

This applies whether the property is profitable or not.

If you have qualifying income (made up of property income and self-employment income) of over £20,000 you are likely to be required to join Making Tax Digital (MTD) for income tax. For more information on when landlords are required to join MTD for income tax, see our guide here. 

How can I use my losses? 

Unfortunately, you cannot offset rental losses against other income. If you had any other rental properties, they may be regarded as one rental business and this loss would automatically be offset against the profits of the other rental properties. 

Property losses may only be offset against future profits from the same rental business. If you purchase another rental property later on, you may not be able to offset the loss against these profits if there is a large gap between when you owned each of the properties. 

Need some help? 

TaxAssist Accountants can help landlords like you with: 

• dealing with HMRC 
• completing your self-assessment tax return 
• planning and structuring your tax affairs if you buy more properties, and 
• reviewing whether you need to join MTD for income tax. 

 

Last updated 3 Jul 2026 | First published 4 May 2018

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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