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This guidance note sets out how individuals can obtain tax relief for losses incurred in a rental business.

For income tax purposes, rental profits from land and buildings are categorised as either:

1. •

   a UK property business, or

2. •

   an overseas property business, see the Overseas property business for individuals guidance note

England, Wales, Scotland and Northern Ireland make up the countries of the UK. The Isle of Man and the Channel Islands are treated as overseas for the purposes of the legislation.

This means that UK rental profits are pooled together and reported as one business, and overseas rental profits are pooled together and reported as one business. This guidance note refers to a UK property business, but the rules apply equally to an overseas property business.

The exceptions to this are:

1. •

   furnished holiday lettings which are calculated and reported separately up to 6 April 2025 when the FHL tax regime will be abolished, see the Furnished holiday lets guidance note. From 6 April 2025 onwards, former FHL properties