A Tax Bill to ring-fence losses was introduced to Parliament on 5th December 2018 and will have it’s first reading on 12th December 2018.
Below is a summary sent to me by a local accountant:
Ring-fencing Residential Property Deductions
Proposed rules in the Bill are intended to ensure that investors will no longer be able to deduct expenditure relating to their loss-making residential investment properties from their other income (for example, salary or wages, or business income), to reduce their tax liability. This will be done by allocating deductions for residential land to the next income year, to the extent those deductions exceed income from residential land. The Government considers that in conjunction with the extension of the bright-line test, ring-fencing losses from rental properties would make property speculation less attractive and level the playing field between property investors and home buyers. The new rules will not apply to a person’s main home or a property that is rented out and used privately, such as a bach. The rules are proposed to apply in full from the start of the 2019-20 income year.