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Where Taxpayers and Advisers Meet

End of property ownership taxation

JJ2024
Posts:3
Joined:Sun Sep 08, 2024 5:58 pm
End of property ownership taxation

Postby JJ2024 » Sat Sep 28, 2024 8:29 pm

I had a rental property. In the 23/24 tax year it made a profit and will incur personal tax.

The property was sold in May and there were significant renovation costs incurred. Which would generate a tax loss in 24/25 when the tax year is done. These would cover the tax I need to pay for 23/24.

Is there any way I can offset backwards to mitigate the 23/24 tax year profits? Or am I destined to lose the tax losses generated in 24/25.

Fyi I had a cgt profit on sale, and have paid the tax on that.

pawncob
Posts:5162
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: End of property ownership taxation

Postby pawncob » Sun Sep 29, 2024 8:00 pm

Were the renovation costs "capital"? Were they set against the gain?
If not, they cannot be used against last year's income.
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4210
With a pinch of salt take what I say, but don't exceed your RDA


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