I am doing my tax return for rental property. Can you carry forward a Capital Allowance loss from the previous year. If so how do you calculate Capital Allowance loss.
Where your capital allowances ( 12.5% written off against original cost each year until cleared) are too large to be completely offset against the rental profit you can carry the excess forward, along with any rental loss, indefinitely, to be used to reduce future rental income.
Keep the loss on record, and bring forward into each year's tax return.