Property acquired in November 2006 and let out until April 2008. (17 months)
Became PPR from April 2008 to June 2011. (38 months)
Let again from June 2011 to June 2012 when sold. (13 months)
A loss arises on disposal (after taking into account all legal fees/stamp duty etc) of £96K.
I believe I can have a CGT loss for the non-PPR period, just as a gain would be chargeable. Now, if there was a gain, then the PPR exemption would also cover the last 3 years of ownership so only the first 17 months would be chargeable (subject to lettings relief etc). But as we are not exempting a gain here (because there is no gain), can I have a CGT loss equivalent to 30 months (17+13)?
Replies (7)
Please login or register to join the discussion.
I may stand to be corrected but my first reaction is that the last 36 months rule works by treating the last 3 years of ownership as a period of residence, regardless of actual residence, and therefore that will be the case irrespective of whether what is being reduced is a taxable gain or an allowable loss.
I agree with John
I think you need to read sections 223(1) and 223(2) in the context of S.16(2).
Yes
You calculate the exempt (or more correctly non-chargeable) loss exactly as you would calculate the exempt gain.
The lettings extension doesn't then apply though because 223(4) starts with the words where a gain arises (with no "chargeable" qualification), not to mention the fact that it would become silly.