My wife & I purchased a Seaside Resort property in 2000 (Section 48 Finance Act 1995, subsequently amended by Section 353 TCA 1997). It came with capital allowances over 11 years (50% in year one ; 5% per year over remaining 10 years).
We did not fully use the year 1 capital allownce, so we have been carrying excess Capital Allowances since then, which we have been unable to offset against net rental income up to now, as we have never had net profit income.
On the annual tax return, Form 12, for 2007, item 13 (Rental Income from Land & Property) on page 5 states : "If you wish to elect, under Section 305(1)(b) TCA 1997, to set any unused Capital Allowances (not already ring-fenced) in respect of Buildings, for 2007, against your other income, state the amount of unused Capital Allowances in respect of Buildings for 2007 available for offset against other income".
Does anyone know if we can off-set these excess allowances against our 2007 PAYE income, under Section 305(1)(b) TCA 1997?
We did not fully use the year 1 capital allownce, so we have been carrying excess Capital Allowances since then, which we have been unable to offset against net rental income up to now, as we have never had net profit income.
On the annual tax return, Form 12, for 2007, item 13 (Rental Income from Land & Property) on page 5 states : "If you wish to elect, under Section 305(1)(b) TCA 1997, to set any unused Capital Allowances (not already ring-fenced) in respect of Buildings, for 2007, against your other income, state the amount of unused Capital Allowances in respect of Buildings for 2007 available for offset against other income".
Does anyone know if we can off-set these excess allowances against our 2007 PAYE income, under Section 305(1)(b) TCA 1997?