CGT (loss) on previous residence

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    CGT (loss) on previous residence

    I sold a house that I previously lived in for a few years, and then subsequently let out for 2 years, before selling (within the third year) of moving out.

    I made a loss on both the original purchase price of the house (irrelevant ...probably), and an approximate loss of £5K (before solicitors and estate agents fees) on what the house was worth at the time we turned it into a letting 'business'.

    Because I sold it within 3 years of moving out, I believe there is Private Residence Relief from CGT....

    What I want to know is
    1) Because I sold it within 3 years, and am entitled to Private Residence Relief, can I still claim a loss?
    2) Is there any point in claiming a loss (if I can), given that:
    -- We have no other properties let out
    -- I have no other capital gains that I can foresee (in the next 5-10 years at least) anyway
    -- The 2012-2013 tax return is likely to be the last I fill in for a few years at least

    Also, would a loss carry over automatically (indefinitely) without me filling in a Self Assessment Tax Return each year?

    #2
    Rather than a Loss (for CGT), you have no gain, as it is fully exempt via PPR relief.

    Comment


      #3
      Thanks for that. It's 1 less thing to think about!

      Comment


        #4
        http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm

        Comment

        Latest Activity

        Collapse

        • Reply to Recent tax return
          by jpkeates
          I suspect that you completed the return incorrectly.
          25-01-2022, 09:30 AM
        • Recent tax return
          by Ailers
          Hi, new here, sorry if this has been asked already but I can't find the answer.

          I have just completed my tax return for 2020/21 as a landlord with a few properties. My income was 22k and my outgoings (maintainance, ground rent, insurance, mortgage payments etc) was 18k. The mortgages are...
          24-01-2022, 22:42 PM
        • Reply to 50/50 ownership versus rental split
          by AndrewDod
          Yes (if you are spouses)
          Probably wise to use a lawyer
          CGT not relevant as you can freely transfer between spouses for CGT purposes (even shortly before a sale)...
          25-01-2022, 08:52 AM
        • 50/50 ownership versus rental split
          by Deeks67
          Hi guys , I have recieved some inaccuratre advice ( not from this site ) RE ownership and rental income split . my wife and I have 2 unemcumbered properties which are renting out , the first started renting in Oct 2020 and the second started in July 2021 . Both properties are in joint names 50/50 (...
          25-01-2022, 06:24 AM
        • Reply to Tax return
          by jpkeates
          If it was first let in December 2020, the costs allowable against income prior to that take place on the first day of the first tenancy for tax purposes.

          So, if you mean can you claim it on a tax return for April 2020 to April 2021, the answer is yes.
          You can't claim it for this tax...
          24-01-2022, 21:10 PM
        • Tax return
          by pchaure
          Hi
          New to this, buy to let property got in 2018 but renewing took time and COVID hit. Rented out since Dec 2020. I had Electrical work done completed in 2019, as had no income I had not filled in self assessment. Can I claim it in this tax year?
          24-01-2022, 19:05 PM
        • Reply to Advice
          by SouthernDave
          I started my limited company a year before buying the first property, then bought a second 2 months later, a third 3 months after that, a fourth 5 months after that and so on to where I am now. Our lenders have never said they want a separate company per property. Ive never heard of that, if it were...
          23-01-2022, 17:40 PM
        • Advice
          by jhoggard
          Hi,

          I currently have a property rented out in my own name with a fair bit of equity around 50% LTV this is actually a repayment mortgage which i'm looking to switchover to a interest only. When i do this i'm also taking money out of the property to put towards another which i'm looking...
          20-01-2022, 14:25 PM
        • Reply to Advice
          by jpkeates
          I don't think we disagree.

          The OP has one property and is looking to buy a second.
          At that point in that business, lenders will want a company per property.

          There's a point where that ceases to be the case, when the portfolio gets big enough, or, presumably when someone...
          23-01-2022, 17:34 PM
        • Reply to Advice
          by SouthernDave
          i concur with James, once you get over 4 properties, they consider you to be a portfolio landlord and want to start seeing cashflow forecasts before lending to make sure the company is buoyant. Directors guarantees each time but no limits on number of properties or number of dofferent lenders.
          23-01-2022, 16:50 PM
        Working...
        X