Leting relief CGT loss after improvement expenses c/f against future profits 2nd BTL

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    Leting relief CGT loss after improvement expenses c/f against future profits 2nd BTL

    Selling a BTL property for £130k on which I will have a capital gain of approx £8k over 9 years of ownership.
    No CGT payable as below CGT allowance(no other disposals) of £11k
    Lived in the property as main residence for 4 years so in terms of reliefs would qualify for 5 half years out of the 9 years that I occupied the property.
    However spent about £15k on improvements to the property during my occupancy period. So overall made a capital gains loss would I be able to carry this forward and offset against CGT on second BTL property.

    If so how would the calculation be made in relationship to the expenditure on the improvements.

    May not even be worth working out very rough mans maths total cost £137k sell at £130k max loss £7k @ 18% so £1260 or is this to simplistic?

    Grateful for any help
    Last edited by barrowboy; 24-02-2016, 09:11 AM. Reason: correct figure

    #2
    You can only offset the capital loss against a capital gain in the same tax year.
    You can't carry the loss forward against a future CGT liability.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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      #3
      jpkeates

      Thanks for prompt response something of a relief(excuse pun) dreading trying to find receipts for improvements

      Comment


        #4
        You have to report your capital loss in your tax return or by letter :

        Acquisition cost in 2006 ( including legal costs ) = £122K.

        Improvement costs in 2006-2007 = £15K

        Sales proceeds ( after deducting selling costs ) in 2016 = £130K

        Capital Loss ( to carry forward) = £ 7K.

        https://www.gov.uk/capital-gains-tax/losses

        Comment


          #5
          You live and learn (once more!)
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            What were these improvements and are they really capital in nature. Regards Peter

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              #7
              Block paved rear garden to make turning parking area £7k new kitchen and appliances £5k flat roof to extension replaced by pitched roof with velux lights £3k
              Kitchen floor with underfloor heating £2k, rear door blocked up ,window replaced with patio doors £1.5k -all figures approx.

              Would all these qualify?
              Glad I looked back but not sure how many of the receipts I am going to be able to find after this time

              Comment

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