Second Home Loss

Second Home Loss

14:22 PM, 2nd September 2015, About 7 years ago 3

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I purchased a second “holiday” home in 2004 for £250k and it has never been rented out. I am currently looking to sell it, but realistically it’s only worth £225-£230K, Ouch! It was also registered as my private residential property for some time to gain the relief when sold.second home

Now the question, if I sell the property at a loss, can I carry this loss forward against my rental property income or offset the loss against a CGT gain on another rental property recently sold?

If no to either option because it’s effectively a private residence, what happens if I rent it for a period of time. Does it then get treated in the same “tax” manner as one of my other rental properties?

I’m trying to think of a possible way of reducing the pain of a potential £25k loss!




7:23 AM, 3rd September 2015, About 7 years ago

I believe you can crystallise the loss (i.e. declare it as a loss on your next tax return) and then offset any present or future CGT gains from any source. You cannot use it against income as this is treated separately. If you rent it then appropriate tax rules apply.

Joe Bono

11:27 AM, 3rd September 2015, About 7 years ago

As it was your main residence no CGT loss relief is available. If you rent it out for a while before sale part of the loss may become deductable from future gains from any source.


8:37 AM, 4th September 2015, About 7 years ago

Reply to the comment left by "Joe Bono" at "03/09/2015 - 11:27":

Sorry Joe, I don't follow your comment - it isn't her main residence and so does not qualify for PPR but still qualifies for the personal allowance against CGT as does any gain. Renting it out makes no difference to CGT.

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