CT600 Box 245: UK Property Business Losses

Box 245 on the CT600 is for UK property business losses. This applies when your company's rental property income is exceeded by property-related expenses.

What Goes in Box 245?

Box 245 captures losses from your UK property business that you're claiming against other profits. This includes losses from:

Buy-to-let properties
Commercial property rentals
Holiday lets
Mixed property portfolios

If your property business is profitable or you don't have property, Box 245 will be zero.

Understanding Property Business Losses

What Creates a Property Loss?

A property business loss occurs when:

``` Property Income < Property Expenses ```

Example:

Rental income: £15,000
Mortgage interest: £10,000
Repairs: £6,000
Insurance: £1,000
Management fees: £2,000
Total expenses: £19,000
Loss: £4,000

Common Property Expenses

Expense Type	Deductible?
Mortgage interest	Yes (for companies)
Letting agent fees	Yes
Insurance	Yes
Repairs and maintenance	Yes
Council tax (if you pay)	Yes
Ground rent	Yes
Professional fees	Yes
Capital improvements	No (capital, not revenue)

How Property Losses Are Used

Relief Options

Property business losses can be:

Set against current year total profits (via Box 245)
Carried forward against future property profits
Carried back to previous property profits (limited)

Set Against Other Profits

Unlike individual landlords, companies can:

Set property losses against trading profits
Offset against any type of company income
Get immediate tax relief

This is one advantage of holding property through a company.

Calculating Box 245

Step-by-Step

Calculate total property income (all properties)
Calculate total allowable property expenses
If expenses > income, you have a loss
Enter the loss amount in Box 245

Worked Example

Item	Amount
Rental income	£24,000
Mortgage interest	(£12,000)
Agent fees (10%)	(£2,400)
Repairs	(£8,000)
Insurance	(£600)
Void periods costs	(£3,000)
Net position	(£2,000) loss

Box 245 = £2,000

Box 245 vs Box 190

Box	Purpose
190	Property business income (profit)
245	Property business losses

If property business makes a profit → Box 190
If property business makes a loss → Box 245

Only one will have a value in any given period.

Interaction with Trading Profits

Example: Mixed Company

A company with both trading and property activities:

Source	Amount
Trading profits (Box 165)	£50,000
Property loss (Box 245)	(£8,000)
Total profits (Box 235)	£42,000

The property loss reduces overall taxable profits.

Restrictions on Property Loss Relief

Against Total Profits

When claiming against all profits:

Must be in the same accounting period
No restrictions on type of profit offset
Claims are for the year of loss

Carrying Forward

If losses exceed other profits:

Remaining loss carries forward
Can only offset against future property profits
Or future total profits (choice available)

Property Companies vs Mixed Companies

Property Companies

If your company only holds property:

Box 245 loss carries forward
Wait for profitable property years
No trading profits to offset

Mixed Companies

If your company trades AND holds property:

Property losses offset trading profits
Get immediate relief
More flexible loss utilisation

Box	Description
190	UK property business income
240	Non-trade loan relationship deficits
245	UK property business losses (this box)
250	Management expenses
275	Non-trading losses on intangibles

Common Questions

My company has one rental property that lost money - does this apply?

Yes. Even one property creates a "property business" for tax purposes. If expenses exceed income, you have a Box 245 loss.

Can I set the property loss against my director's salary?

No. Box 245 is for company tax purposes only. Director's salary is a personal matter and doesn't interact with Box 245.

What about interest on the mortgage?

For companies, mortgage interest on rental property is fully deductible as an expense. This often creates losses, especially in early years when interest is high.

My property was empty for three months - do void period costs count?

Yes. Costs incurred during void periods (when the property is available but not let) are generally allowable expenses.

Can I carry back property losses?

Limited. Property losses can only carry back against property profits from the previous 12 months, not against other types of profit.

When Using TinyTax

TinyTax handles property business calculations:

Enter your property income
Enter property-related expenses
If a loss arises, Box 245 is populated
Offset against other profits is automatic

TinyTax calculates whether you have a property profit (Box 190) or loss (Box 245).

Need Help?

TinyTax guides you through property business calculations. For complex property portfolios or mixed-use properties, consider consulting a tax specialist.

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