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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15916
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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We had a holiday home in Spain which we sold earlier this year.

Resolved Question:

We had a holiday home in Spain which we sold earlier this year. We made a capital loss on this transaction which has been reported to the Spanish Tax Authority by our Spanish Legal/Fiscal representative. Do we need to also report this capital loss to HMRC?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. You should report the loss either in a tax return or by letter to HMRC if you don't complete self-assessment tax returns. If you don't do so within four years of the end of the tax year in which the loss was incurred, you won't be able to use it against gains you may make in future tax years. Take a look here for more information: https://www.gov.uk/capital-gains-tax/losses I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Thank you, ***** ***** am not wanting to use the loss against any future gains. My concern is will I be prosecuted or penalised if I do not declare the loss?
Expert:  TonyTax replied 1 year ago.
You won't be prosecuted or penalised but you should disclose capital transactions to HMRC if the total disposal proceeds of all transactions for the tax year exceed £44,000 (four times the annual CGT exemption) or the gains exceed the annual CGT exemption which is currently £11,100.
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