Andica SA800 – Transitional Loss Reporting Partnership Returns

HMRC have provided guidance on reporting changes for transitional brought forward Furnished Holiday Lettings (FHL) losses for the tax year 2025-2026.

Due to updates in tax treatment, these losses can no longer be reported in Box 1.18 of the SA801 Partnership Return. A workaround has been introduced by HMRC requiring customers to report such losses under ‘Other Expenses’ and include appropriate disclosures.

Customers must retain the losses at the partnership level, and report them as follows:

1. UK FHL losses → Box 1.30 ‘Other Expenses’ on the supplementary form SA801 ‘Partnership UK Property’.

2. EEA FHL losses → Box 2.17 ‘Other Expenses’ on the supplementary from SA802 ‘ Partnership Foreign’ Navigate by clicking 'Next' and 'Finish' on all sections and review your returns and reports.

Customers are advised to use the white space (additional information section) on the form to state that the figure represents FHL losses brought forward to 2025/2026.

This work around will only be needed for the 1st year of the transition.