Although you have no income to tax from your property, you would probably benefit from informing HM Revenue & Customs (HMRC) of the losses, which you can do by submitting a tax return.
This will allow you to then carry forward the losses and offset them against future profits you make from the property. So it could save you tax in the long-term!
Please note, you are obliged to submit a tax return if your gross rents (i.e. the income from the property before deducting any expenses) be over £10,000 per annum. This is irrespective of whether the property is profitable or not.
If you would like some assistance in registering with HMRC and completing your tax return, please feel free to get in touch with your local TaxAssist Accountant.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. 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 information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.