Help with CGT calculation

by **Peter D** on Sat Jul 23, 2011 8:59 am

Loss relating to what ??
Inventory Clerk, Estate Agent Commission: most probably
Ground rents and mortgage interest is deductible form the rental income not the capital gain.
Regards Peter

by **kc1** on Sat Jul 23, 2011 2:33 pm

Peter D wrote:Loss relating to what ??

Rental income minus costs each year including renovation created a net loss each year. Self Assessment form has a box where you record the loss and another for the loss carried forward. Surely this come of the capital gain when you sell it, because it exceeds any taxable income - is that right?

by **Peter D** on Sat Jul 23, 2011 3:05 pm

Rental income is Revenue in nature not Capital. If you were making a revenue loss and carrying it forward you can only offset that against Revenue gains in the future. Revenue and Capital do not interchangeable. I assume this was not a qualifying furnished holiday let. Regards Peter

by **kc1** on Sat Jul 23, 2011 3:58 pm

That's right, not a holiday let.

The income was of course revenue, but the expenses which outweigh the revenue include capital costs, which are included on the Self Assessment form (Box 23 of the Property section: "23: Property repairs, maintenance and renewals")

by **Peter D** on Sat Jul 23, 2011 4:53 pm

Capital items do not go in 23. Capital item are deductible from the capital gain on disposal. Please detail the items that you think are capital. Things like A wet room to replace an old simple shower room. A new marble topped kitchen with an island to replace a cheap Formica kitchen. An extension to the property or a conservatory. Regards Peter