How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3815
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I need some advice on captial gains losses. I bought a house

Resolved Question:

I need some advice on captial gains losses. I bought a house for £165k in 2008 and now it is worth £130k, if I sell it how much tax (and what type of tax) can be offset against the loss?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Presumably this house is not your sole or main domestic residence?
Customer: replied 1 year ago.
Hi Keith
The house in question isn't my home. I currently rent it out as a buy to letMartin
Expert:  bigduckontax replied 1 year ago.
Right Martin, if you sell it at a loss then you will make a capital loss which can be set against any other capital gains you make in the year of sale to reduce your gain to your Annual Exempt Amount (AEA) of 11.1K or, alternatively, the loss may be carried forward indefinitely to offset future capital gains.
Customer: replied 1 year ago.
what is a capital gain in this context? Does that include income tax or dividends from a company I own?
Expert:  bigduckontax replied 1 year ago.
No, it is Capital Gains Tax (CGT); a different tax regime from Income Tax.
Customer: replied 1 year ago.
So I cannot offset company dividends against the capital loss?
Customer: replied 1 year ago.
So I cannot offset company dividends against the capital loss?
Expert:  bigduckontax replied 1 year ago.
No sorry, save in the following exceptional circumstances [source: Chaddesdley Stanford]: 'You can offset capital losses arising on the disposal of shares you acquired by subscription in a qualifying trading company, or following a negligible value claim in respect of such shares (as covered in technical paper “Negligible Value Claims”). Shares acquired by subscription are shares issued directly to you from the company rather than purchased from another shareholder.'
Customer: replied 1 year ago.
ok that's fine I will just pay
Expert:  bigduckontax replied 1 year ago.
Please be so kind as to rate me before you leave.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

Related Tax Questions