Paying -ve equity off - any way to write off tax?

CTA_2

twig1 wrote: »

Principal private residence relief is the exemption from capital gains tax on any increase of value of the house you live in. You therefore cannot make a capital loss on it either when it is your principal private residence. Presumably you can get a capital loss from it from the date it stopped being your principal private residence but capital losses can only be offset against capital gains so are not in the form of a refund .

He will also have the last three years prior to sale being "deemed residence" and therefore it will not just be the date it stopped being his PPR.

The loss is time apportioned with reference to length of prop being PPR + 3 years deemed residence / total length of ownership.

mrchiggles

CTA wrote: »

Yes, the relief makes gains and losses exempt. That will be what precludes you from realising an actual (useful!) capital loss.

Oh well, was worth an ask! How do they assess when the losses/gains happened during the course of time? Does a taxman sit down and look at house price indexes to work out when things moved during what period?

CTA_2

mrchiggles wrote: »

Oh well, was worth an ask! How do they assess when the losses/gains happened during the course of time? Does a taxman sit down and look at house price indexes to work out when things moved during what period?

It doesn't matter when prices moved.

You will crystallise a gain/loss based on what you receive in proceeds less your tax base cost.

This gain/loss is then time apportioned by a formula (PPR dates + deemed residence/total residence).

It therefore doesn't matter when prices moved etc, because its only the amount you receive and your tax base cost which is important.