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Income from land and property (traditional heading Schedule A) is relatively straightforward.
There are different types of rental property:
Furnished holiday letting.
Income from land, ground rents, feu duties, wayleaves.
Historically (before 6/4/95), the rules on property income where more restrictive. Now all rental income (schedule A) is 'pooled' with the exception of furnished holiday letting, which is treated like a trade (schedule D).
The taxable income is computed as:
Rental income x
less expenses (x)
less losses brought forward (x)
----
Property income/(loss) x
Property losses can only be set against property income except in two cases, where losses may be set against other income:
Losses from furnished holiday lettings; and
Losses from other types of rental income but only to the extent that the capital allowances (claimed as expenses) created the loss.
IRIS will automatically set any losses brought forward from earlier years against all property income, carrying forward the unused residue.
