Declaring CGT loss

Kynthia

I'd appreciate some help on the below questions. In mid 2012 I disposed of a property that was formerly my home but then was let for a few years with the income fully declared. Therefore I'm trying to enter this information onto my tax return and have two questions.


1. I bought the property jointly with someone and then sold my share to them. Should I put the market value of the whole property down or should I enter the value of my percentage for the purchase and sale price?


2. I sold for the same price I purchased, due to buying just before the decline in the market and the lease length shortening. Therefore I have no gain and my loss is my purchase/sale costs. Do I need to enter my PPR and letting reliefs when they do not reduce my gain, as I didn't have a gain?


Thank you for your assistance.

jimmo

To deal with your final question first PRR applies equally to losses as it does to gains but lettings relief doesn’t.
http://www.hmrc.gov.uk/manuals/cgmanual/CG65080.htm
http://www.hmrc.gov.uk/manuals/cgmanual/cg65082.htm
With regard to your other questions there are so many technical issues here that I seriously doubt that there is sufficient time, even on a forum, to deal with them all in the time you have left to submit your SA Return by tomorrow.
So, to be practical, if you have other capital gains to declare then use of a loss, which may or may not exist, carries a risk of a penalty for a false Return. If you don’t have any other capital gains to declare it’s a bit more academic but, as you sold in mid 2012, it is very likely that HMRC are already aware of your sale and selling price so an Enquiry into your Return could be opened at any time.
I would therefore suggest that, for now, you complete your Return, declaring your half of the purchase price and your selling price.
You will then declare No Gain, No Loss.
That will buy some time because you can amend your Return to more accurate figures later.

Kynthia

Thank you for your help. You're correct that is all a bit academic as I didn't make a gain and I don't have other eligible assets so am unlikely to need to use the loss in any way. Therefore it seems pointless to work out the PRR.


The property was purchased and sold at market value, therefore I'll use the percentage I owned to calculate the value.

jimmo

Many would say you are missing an opportunity to establish a loss that can be carried forward indefinitely just in case.
I rather think you’ve got far more wonderful things to focus on just now and for the foreseeable future.
Good luck, don’t swear at anyone in work on your last day and have a nice baby.:j