Second Home LossMake Text Bigger
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.
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!
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