Tax Credits and Losses on Foreign Property

philjc

Does anyone know if the capital loss on a foreign property is allowable in your tax credits claim.
It states that any income or gains made on foreign property must be declared for the purposes of tax credits but its not clear if losses can be offset against income made in "other income"
Has anyone come across this situation?

Thanks

Phil

Oldernotwiser

Are you sure you're actually talking about tax credits?

Hammyman

Yes they are. Capital loss isn't allowable AFAIR unless you were operating it as a business and then it would be accounted for in your business accounts so wouldn't need declaring separately. Income would be rental profit. If it is a house you bought in Spain for yourself for £100,000 a year ago but its now worth £90,000 then thats just tough and no you can't include it. It is as ludicrous as saying the home you bought in the UK a year ago which is worth £10k less is allowable.

I could be, and am frequently wrong though