Section 23: does it work backwards?

P

Pistoia

Guest
Hi, I know that section 23 relief can work forward, meaning if I get 20k of relief and I don't use it fully in the 1st year I will be able to offset the balance against my "year 2" rental income.

But if I have already paid taxes for my rental income, then I buy a property with Section 23, can I then have my taxes money back in some way?

thx
 
S.23 relief

S.23 relief is granted the day a property is rented (having obviously been purchased before hand)

It is allowed in the year of purchase

eg purchased and rented in Dec 03
releif availible for tax year 2003
It is not apportioned etc, full relief allowed

In essence it creates a tax loss in your return
And since losses on Case V income cannot be brought back, only forward the answer to the original question is

No, it cannot be brought back from one year to another

But as in the case of the example above it can be utilised at the year end after prliminary tax was already paid

I hope I have explained it clearly

Stu
 
Re: S.23 relief

Your reply makes perfect sense. Thank you!
 
You must log in or register to reply here.
Back
Top