BTL bought in 2008, sold in 2023 for 15k less than i paid, can i use the loss to offset other tax ow

jameslester78

looking at my 23/24 self cert return:

I bought BTL in 2008 for 105k, sold in 2023 for 90k = 15k loss (no income from property in 23/24 year - it was vacant)

The only tax I am due to pay is PAYE - already paid - from my main job, and about £800 I owe from savings interest

Can I offset the 15k loss against the tax I owe? If there is a guide to completing the self cert to reflect this Id be interested in that or any other comments.

I fully expect that I either cant use it to offset or it might not be worth it.

eskbanker

Capital gains tax is separate from income tax, so you can't offset a capital loss against an income tax liability.

jameslester78

ok thanks for straight forward answer to the question

Hoenir

Why the lack of appreciation? 

MetaPhysical

eskbanker said:

Capital gains tax is separate from income tax, so you can't offset a capital loss against an income tax liability.

That's my understanding too and it's rather annoying that won't allow you to link the two together this way to reduce your income tax liability yet when it suits the government to charge you a higher percentage of CGT due to your higher income tax rate then they will  🙄

Silvertabby

Hoenir said:

Why the lack of appreciation? 

Bought just before the 2008 crash and never recovered?  

flaneurs_lobster

Silvertabby said:

Hoenir said:

Why the lack of appreciation? 

Bought just before the 2008 crash and never recovered?  

I thought @Hoenir was commenting on the tone of @jameslester78 's reply  Did think it odd...

Nomunnofun1

flaneurs_lobster said:

Silvertabby said:

Hoenir said:

Why the lack of appreciation? 

Bought just before the 2008 crash and never recovered?  

I thought @Hoenir was commenting on the tone of @jameslester78 's reply  Did think it odd...

You weren’t the only one - but I did catch on!

Nomunnofun1

MetaPhysical said:

eskbanker said:

Capital gains tax is separate from income tax, so you can't offset a capital loss against an income tax liability.

That's my understanding too and it's rather annoying that won't allow you to link the two together this way to reduce your income tax liability yet when it suits the government to charge you a higher percentage of CGT due to your higher income tax rate then they will  🙄

Indeed but why would HMRC grant tax relief to someone who has made a poor investment on a property, shares etc?