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Where Taxpayers and Advisers Meet

seeking HMRC approval for claiming a capitalloss on the sale of apartments in Bulgaria in 2009

chriscanning7
Posts: 2
Joined: Fri Apr 19, 2019 10:39 am

seeking HMRC approval for claiming a capitalloss on the sale of apartments in Bulgaria in 2009

Postby chriscanning7 » Fri Jun 14, 2019 11:31 am

I was hoping someone may be able to advise.

I sold two apartments in 2009 that were in Bulgaria. The total loss was £33,000

I never reported the loss and never realised I might be able to set the loss against a gain in the future.

I have just submitted a self assessment for 2017/18. In this year I sold a buy to let property and made a gain of £9,000

I understand that I may still be able to use the loss I made in 2009 against the gain I made in 2017.

Ive spoken to a technician from HMRC and she told me that I could not automatically do this and I would have to write a letter and ask if the tax inspectors would approve the loss and me using it to offset a gain some 8 years later.

Could anyone advise if this is possible and if so what I should include in the letter to assist with it being approved?

Many thanks

Chris

bd6759
Posts: 3076
Joined: Sat Feb 01, 2014 3:26 pm

Re: seeking HMRC approval for claiming a capitalloss on the sale of apartments in Bulgaria in 2009

Postby bd6759 » Fri Jun 14, 2019 12:44 pm

You cannot do this.

A loss is only an allowable loss if it has been notified to HMRC in the same way as you would make a claim. The time limit for making a claim is 4 years so you are now out of time. There are no provisions to extend the time limit.

s16(2A) Taxation of Chargeable Gains Act 1992 says:
(2A) A loss accruing to a person in a year of assessment shall not be an allowable loss for the purposes of this Act unless, in relation to that year, he gives a notice to an officer of the Board quantifying the amount of that loss; and sections 42 and 43 of the Management Act shall apply in relation to such a notice as if it were a claim for relief.
You won't find that provision on legislation.gov.uk because it has not been updated. 2A was introduced by S113 Finance Act 1995 as part of a raft of consequential amendments required for the introduction of self-assessment.

http://www.legislation.gov.uk/ukpga/1995/4/section/113

Jholm
Posts: 59
Joined: Mon Mar 11, 2019 4:22 pm

Re: seeking HMRC approval for claiming a capitalloss on the sale of apartments in Bulgaria in 2009

Postby Jholm » Fri Jun 14, 2019 12:51 pm

Surely your £9,000 gain is covered by the annual exemption anyway? Or do you mean taxable gain of £9,000?


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