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Where Taxpayers and Advisers Meet

Income losses set against CGT

TillyWhim
Posts:1
Joined:Mon Jun 08, 2020 9:47 am
Income losses set against CGT

Postby TillyWhim » Mon Jun 08, 2020 10:17 am

Hi
I jointly owned the freehold of a property with two of my brothers, (a deed of gift from our mother in 1987), from which we received a small income from renting the shop.

We sold the freehold in January 2020 and I am now in the process of completing form SA108 for CGT for my share of the sale proceeds.

Prior to the sale we had to carry out some maintenance, (roof repairs and replacement of rotten wood), the cost of which meant that in the 2019/20 tax year we made a loss on the income from the property part of the SA form. (A loss of £710.00 for my share). As I do not earn enough taxable income to pay tax, the SA form says this loss is to be rolled over to next year.

My question is; can I put this £710.00 loss in Box 46 of SA108 to set it against the capital gains? After reading the CGT summary notes and HS227 I am confused! My brother says I can't use box 46 as HMRC will roll this loss over whatever I do so I will effectively being offsetting this loss twice.

Any advice welcome.
Thanks

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