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Capital Gain loss on purchase of new property
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phil_the
Posts: 9 Forumite

in Cutting tax
I have sold one property which has been rented out and bought another.
I have some PRR, but will still be a hefty CGT bill on the sale.
Can I claim the solicitor fees and stamp duty on the purchase of the new property as a loss in this tax year in order to reduce my overall CGT liability? Obviously this will mean I can no longer claim that back in the future if/when the new property is eventually sold.
Thanks
I have some PRR, but will still be a hefty CGT bill on the sale.
Can I claim the solicitor fees and stamp duty on the purchase of the new property as a loss in this tax year in order to reduce my overall CGT liability? Obviously this will mean I can no longer claim that back in the future if/when the new property is eventually sold.
Thanks
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Comments
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phil_the said:I have sold one property which has been rented out and bought another.
I have some PRR, but will still be a hefty CGT bill on the sale.
Can I claim the solicitor fees and stamp duty on the purchase of the new property as a loss in this tax year in order to reduce my overall CGT liability? Obviously this will mean I can no longer claim that back in the future if/when the new property is eventually sold.
Thanks0 -
TheSpectator said:No, those cost were not incurred in the acquisition or disposal of the sold property.0
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phil_the said:TheSpectator said:No, those cost were not incurred in the acquisition or disposal of the sold property.Moreover - you can’t claim ‘a loss in this tax year’ as you have made no disposals.Your last assumption is correct.1
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phil_the said:TheSpectator said:No, those cost were not incurred in the acquisition or disposal of the sold property.1
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They are the costs of buying and/or selling and therefore can't be claimed against CGT until the sale crystalizes.
If they did allow them, what's to stop one claiming them, decide not to sell and then "forget" to tell HMRC so a future tax return does not adjust for them. I'm not saying you would do that, but your original post does say if/when the property is sold.
Plus, how do you know what rate of CGT will be applied to them before the property is sold?1 -
OK. Thanks. Thought it was worth checking.
Seems like there's probably some loophole here, if I sold and re-purchased the new house again, I'd be able to claim this as a loss, but that seems dodgy.0 -
phil_the said:OK. Thanks. Thought it was worth checking.
Seems like there's probably some loophole here, if I sold and re-purchased the new house again, I'd be able to claim this as a loss, but that seems dodgy.0 -
phil_the said:OK. Thanks. Thought it was worth checking.
Seems like there's probably some loophole here, if I sold and re-purchased the new house again, I'd be able to claim this as a loss, but that seems dodgy.
And then incur double SDLT.0 -
yeah, was just a throwaway comment - double stamp duty would be the killer here.
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phil_the said:yeah, was just a throwaway comment - double stamp duty would be the killer here.Make a £20000 loss - you are down £20000.Set this against future gains (if it were possible) saving £20000 at, say 28% - tax saving £8400.You are still £11600 out of pocket!0
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