capital gain offsetting

theGrinch

if you purchase 2nd home and make a capital gain on sale, can you offset that capital gain against costs i.e. building work, legals, interest, stamp duty etc?

sneekymum

Of course - we've just had that one - HERE

theGrinch

sneekymum, thanks for that. very useful.

on the subject of capital losses offset against the capital gains. can capital losses in a company unrelated to property be offset against capital gains on a property?

can capital losses on one property be offset against capital gains on another property?

thanks

sneekymum

I'm no expert but I believe that if they're your losses you can offset them agaist your gains. Obviously things get complex if property is in more than one name as the flipside of doubling the CGT allowance is halfing the benefit of loss.

theGrinch

do you know if you can offset mortgage interest? thanks

sneekymum

Don't know - bet you can't

telly-addict

The mortgage interest would be set against the rental income (if any), not the capital gain as it is not of a capital nature, it is a revenue expense.

telly-addict

sneekymum wrote:

I'm no expert but I believe that if they're your losses you can offset them agaist your gains. Obviously things get complex if property is in more than one name as the flipside of doubling the CGT allowance is halfing the benefit of loss.

Yes you can offset capital losses and gains that arise in the same tax year. If you only have losses you can carry them forward until you have a gain. Then you will need to take taper relief into account before you reduce your gains for that year.

If you make a loss on a transaction with a 'connected person', usually close family , you can only set that loss off against a gain with the same person.