Overseas Capital Loss offest against UK Capital Gain ?

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    Overseas Capital Loss offest against UK Capital Gain ?

    I am considering selling a Shop which I rent out. I bought it in 1983 for around £20,000 I spent £30,000 on a storage building so it stand me at £50,000. If I sold it for £250,000 I would be in for a lot of Capital Gains Tax on the £200,000 profit.
    I also rent out another property which I am keeping. So I could be described as a Commercial Landlord.
    But would I be able to offset the loss I made on a Rental Property which I bought in Spain.
    I bought the Spanish property in 2003 for Euro 240,000 I lived there for a short time. Returned to live in the UK in 2007 and the Spanish property was rented out (my third property as a landlord) I rented it out for 3 years (obviously filling in both Spanish & UK Tax returns)
    I sold the property in 2003 for Euros 150,000, So effectively I made a capital loss of Euros 90,000.
    Am I right in assuming that as I made a Capital Loss on one rental property I can offset this against a Capital Gain on another.

    #2
    There are separate issues. 2003 is a long time ago (although you may have erred in the date above -- if you meant 2013 you are in a better position). Did you complete a tax return at the time declaring the loss -- if not I am not sure you can do so now. Even if you could there may be a time limit over which a loss can be held.

    On your last point the answer is clearly yes, if they are in the same tax year, or the loss *preceded* the gain and was declared. I also don't think there is an issue of counting CGT in a different country (I own shares on the US and UK stockmarket, and deal with losses and gains together).

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      #3
      Sorry. It was November 2013 when I sold the Spanish House, so in fact as I am about to do my April 2013 - April 2014 Tax Return I assumed that as it was sold in that Tax Year I am still in time.

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        #4
        You will need to convert all CGT relevant items into £ Sterling on the relevant dates to ascertain the correct amount of the Loss for UK tax purposes.

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          #5
          The answer is yes, you can offset the capital loss against the capital gains. Also as long as the capital loss is declared on the return it can be carried forward.

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