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Where Taxpayers and Advisers Meet

Can loss on sale of Guernsey property be offset against UK capital gains?

Chewbacca11
Posts:13
Joined:Fri Jun 24, 2016 1:14 pm
Can loss on sale of Guernsey property be offset against UK capital gains?

Postby Chewbacca11 » Thu Feb 23, 2017 1:31 pm

Hello. Some advice would be appreciated on the below scenario.

I am a UK non-resident with a residential BTL property in Guernsey which is now on the market. Unfortunately the property will sell at a loss. To date, the property income has been included on Guernsey tax returns only due to being a UK non-resident. I have not other investments or holdings in Guernsey.

However, I am returning to the UK in April at which point I become a UK resident again. 2 possible scenarios - is one more efficient than the other?

1. I sell the property as a non-resident, and declare the loss on my Guernsey tax return only. No CGT.

2. If I sell the property at a loss once I am a UK resident, can the loss be offset against capital gains from UK property should it arise in the next few years? Or should the property loss not be included on my UK self-assessment for 2017/18 at all as there will be no gain to report and I can't offset the overseas loss?

Thanks

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Can loss on sale of Guernsey property be offset against UK capital gains?

Postby maths » Thu Feb 23, 2017 8:25 pm

Loss arising on sale of Guernsey property if arising whist UK resident can then be offset against gains of the same tax year and any surplus loss unused can be carried forward for offset.

Chewbacca11
Posts:13
Joined:Fri Jun 24, 2016 1:14 pm

Re: Can loss on sale of Guernsey property be offset against UK capital gains?

Postby Chewbacca11 » Fri Feb 24, 2017 12:12 pm

Thanks Maths. Appreciated. :)


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