Readers’ forum: Relief available for property losses

I am considering the tax position of a small property investment company. Although the affairs are straightforward I am uncertain as to the principles concerning the order of relief of different types of losses.

The company incorporated in 2018 owns one mortgaged UK residential property let to an unrelated tenant. The figures for the year ending 31 January 2022 are: profit from a property business: £8 300; NTLR deficits arising in the period: £5 200; qualifying donations: £100. The following balances are brought forward from the previous 12-month period: property business losses: £2 700; NTLR deficits: £900.

It seems that there are enough losses to cover the property profit in 2022 and there will also be some losses/deficits carried forward. What is less clear is the point of principle as to the order of using brought forward property losses current-year NTLR deficits and previous-year NTLR deficits.

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