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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Can you please clarify the use of a capital loss . My

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Can you please clarify the use of a capital loss for me.
My wife and I owned a small second house in France for just over 6 years which we sold on 30 December 2014 and on this sale we have made a capital loss. On the sale my French lawyers confirmed that there were no French tax liabilities or reliefs on the sale because of the amount involved and because we are resident in the UK. I raised the question of relief for the loss with HMRC who have informed me that this capital loss can only be used against future gains and cannot be used against income. However I thought that a loss incurred in a tax year could be set off against your income of that tax year which is what I want to do because I have paid substantial income tax in the year 2014/2015.
Can you please clarify this for me.
Thank you.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.
I will revert to you shortly.
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your patience.Trading losses can be offset against other income in the same tax year as explained in HMRC helpsheet hs227 herehttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323538/hs227.pdfCapital losses can only be relieved against capital gains in the same year or against future gains as explained herehttps://www.gov.uk/capital-gains-tax/lossesI hope this ishelpful and answers your question.If you have any other questions,please ask me before you rate my service – I’ll be happy to respond.
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