Replies (7)
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Question 1
First of all, I'm not seeing how selling a property at a loss uses your CGT allowance.
Secondly, you gave us a lot of largely irrelevant information about your personal life and then skimmed over the important stuff - like how much you're expecting to make as a chargeable gain.
Basic CGT rules
If you make a capital loss, you must first set it against any capital gains of the same tax year and hence, obtain relief for the loss. If the net gain is less than the annual exempt amount (£11,000 in 2014/15), it is tough - you do not have the option to carry the loss forward and leave just the gain to be covered by the annual exempt amount.
If you can carry a capital loss forward, it is automatically deducted from the next available capital gain, but only to the extent required to reduce the net gain to the annual exempt amount for that tax year.
CGT?
as stated above we are a bit low on facts.
But you need to be aware that in some situations selling off property might be treated as trading not a transaction liable to CGT. This might particularly be the case if you developed the properties to begin with even if you then let them out for a while.
Definitely one for your accountant I think.
Yes but, once you've paid out solicitors fees and estate agents fees, the £12k gain on the house will pretty much be covered by your annual CGT allowance anyway.
Good plan to realize one gain a year, by the way.