This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Tax return CGT help needed

Peaky83
Posts:9
Joined:Thu Aug 13, 2015 12:00 pm
Re: Tax return CGT help needed

Postby Peaky83 » Thu Aug 13, 2015 5:52 pm

In that tax year yes. As we sold it then.

Previous rental income was taken care of in last return.

Why is it odd to to rent for that period?

Peaky83
Posts:9
Joined:Thu Aug 13, 2015 12:00 pm

Re: Tax return CGT help needed

Postby Peaky83 » Thu Aug 13, 2015 8:06 pm

Is there something I am missing here?

LozaACCS
Posts:1504
Joined:Wed Aug 06, 2008 3:55 pm

Re: Tax return CGT help needed

Postby LozaACCS » Thu Aug 13, 2015 9:33 pm

Peter D

Why is it very odd
The OP clearly confuses the computation of the gain/loss with the outstanding loan, what does seem clear is that the property was acquired for 117K and sold for 113.5K (because the OP says it was), on this basis there was a capital loss which may be increased by ascertaining the amount of any legal fees.

bd6759
Posts:3447
Joined:Sat Feb 01, 2014 3:26 pm

Re: Tax return CGT help needed

Postby bd6759 » Thu Aug 13, 2015 10:33 pm

Yes, but since any gain would be covered by PPR relief. ascertaining the exact loss is irrelevant.

There is no gain, and nothing to report to HMRC.

Peaky83
Posts:9
Joined:Thu Aug 13, 2015 12:00 pm

Re: Tax return CGT help needed

Postby Peaky83 » Thu Aug 13, 2015 10:49 pm

Apologies if this does sound like a stupid question but do I not have to report the asset as being sold even if gain or loss so I can then opt out of the tax return next year.

My partner does not work therefore her personal allowance takes care of the 7 or so months rental income offset by expenses. But I thought I had to declare for this year?
I was on the phone for over an hour yesterday to explain but could not get through so any help is much appreciated

King_Maker
Posts:6538
Joined:Wed Aug 06, 2008 3:22 pm

Re: Tax return CGT help needed

Postby King_Maker » Fri Aug 14, 2015 9:11 am

I. It seems that you have made a Loss.

2. If so, it is not available to carry forward - as it relates to PPR and LR.

3. It is reportable in your Tax Return.

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Tax return CGT help needed

Postby Peter D » Fri Aug 14, 2015 12:25 pm

Loza. I found it odd that they rented the flat out in August 2014 and sold it in November 2014. The OP now refers to 7 months of rental income, again odd.
Assuming you informed HMRC you were renting the property out then the sale has to be reported as it the value is more than 4 times the CG Allowance. Regards Peter

maths
Posts:8087
Joined:Wed Aug 06, 2008 3:25 pm

Re: Tax return CGT help needed

Postby maths » Fri Aug 14, 2015 3:20 pm

Where a loss arises on a sale of a sole or main residence such loss is not an allowable loss to the extent that it would have been an exempt gain if a gain had arisen.

However, any loss attributable to a period of letting is an allowable loss and hence claimable.

bd6759
Posts:3447
Joined:Sat Feb 01, 2014 3:26 pm

Re: Tax return CGT help needed

Postby bd6759 » Fri Aug 14, 2015 5:18 pm

But no loss is attributable to the period of letting. The whole period is covered by PPR.

As the gain/loss is exempt, it does not need reporting.

maths
Posts:8087
Joined:Wed Aug 06, 2008 3:25 pm

Re: Tax return CGT help needed

Postby maths » Fri Aug 14, 2015 6:52 pm

bd6759

The property was sold at a loss but during part of the period of ownership it was let.

The loss attributable to the letting period is an allowable loss.

Had the property been sold at a gain possibly the whole gain would have been exempt due to PPR and LR.
However, it wasn't sold at a gain and there is no restriction on any loss being allowable attributable to the letting period.


Return to “Capital Gains Tax, CGT”