To claim unused Section 23 losses, ensure the relief was properly claimed in the first year of letting. Any excess deductions become rental losses, which can be carried forward indefinitely to offset future rental income.
Key Points:
- High Earner Restriction: Limits the relief for high earners.
- USC Property Relief Surcharge: A 5% surcharge may apply on income sheltered by Section 23.
- Clawback: If the property is sold within 10 years, the relief may be clawed back; after 10 years, no clawback applies.
- No Expiry: Unused losses can be carried forward indefinitely but not used against other income types.
