Capital Gains Tax - Quick Question

[VPatel2707]

Hi All,

Wonder if someone can advise/guide me, please.

I am helping my Mum with her tax return. In November 2020, she sold one of her rental properties at £70,000.00. She purchased the Property for £73,000.00 in July 2006 and therefore made a loss.

Does she still need to complete the CGT section in the tax return? My understanding is that she does not as she made a loss?

Many thanks.

[theartfullodger]

Has she made any capital gains during 2020/2021?? e.g. share sales etc etc etc...

[VPatel2707]

Has she made any capital gains during 2020/2021?? e.g. share sales etc etc etc...

Thank you for your reply - no, none at all.

[boletus]

Carry forward the loss to offset against future capital gains. Include transaction costs.

[JamesHopeful]

I am helping my Mum with her tax return. In November 2020, she sold one of her rental properties at £70,000.00. She purchased the Property for £73,000.00 in July 2006 and therefore made a loss.

Slightly aside from the question you asked, was the £70k sale price the full market value of the property, or did she sell at undervalue (e.g. to a family member)? If the latter then bear in mind that CGT is payable against the full market value, not the sale price. (I do appreciate that in parts of NI and some bits of northern England prices may still be slightly lower than they were in 2006, but these areas are increasingly few and far between, so I thought it might be worth checking.)

[VPatel2707]

Carry forward the loss to offset against future capital gains. Include transaction costs.

thank you - does she still need to complete the CGT section on the Self assessment given that she made a loss?

[VPatel2707]

Slightly aside from the question you asked, was the £70k sale price the full market value of the property, or did she sell at undervalue (e.g. to a family member)? If the latter then bear in mind that CGT is payable against the full market value, not the sale price. (I do appreciate that in parts of NI and some bits of northern England prices may still be slightly lower than they were in 2006, but these areas are increasingly few and far between, so I thought it might be worth checking.)

It was market value at the time.

do you know if we need to complete the CGT section on the tax return?

[Section20z]

She would need to have filed a CGT return within 30 days of the sale and attach it again to her 20/21 return.
regardless of liability.