Clutching at CGT straws?
I sold a property in January which I’ve rented out for nearly 30 years, consequently there is a sizeable Capital Gains Tax bill to pay.
I was due to complete on another property in March which would have resulted in a significant loss which I would have used to offset against the other property.
Due to the coronavirus the sale only completed in May ie a different tax year.
Clutching at straws I know, but does anyone if there is a way I can offset the loss of the second property against the gain on the first.
Thanks
Adrian
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Member Since February 2011 - Comments: 3453 - Articles: 286
1:37 PM, 3rd June 2020, About 6 years ago
Hi Adrian,
Unfortunately you sold them the wrong way round as there is no carry-back available for CGT losses, only carry-forward.
Member Since February 2020 - Comments: 12
3:16 PM, 3rd June 2020, About 6 years ago
I have a similar question as I am currently in the process of selling a number of buy to let properties. The first just completed in May and will generate enough to mean that even with my allowance that CGT is due now the new 30 day rule applies . The second is due to complete end of June and will create a loss – Add both together and no CGT will be due for the year . So am I likely to be in a position where I have to report and pay CGT within 30 days on the first prop but not be able to claim this back until I do my tax return a year later – even thought I make a loss on the second sold a month later in the same tax year
Or can I just not report the first as I know the losses of the second will wipe out any CGT due
Member Since July 2013 - Comments: 305
12:25 PM, 4th June 2020, About 6 years ago
Reply to the comment left by Neil Patterson at 03/06/2020 – 13:37
Thanks Neil, that was the plan. Still I’m sure the country is going to need all the taxes it can get for a while so I know mine are going to a good cause!