Taper relief on residential letting property

Taper relief on residential letting property

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A property was purchased for the sole purpose of letting out and then sold 18 months later. Is the property classed as a business or non-business asset for capital gains purposes i.e. how much, if any taper relief is available?
If there is a loss on the rental income in the year of disposal, can this be offset against the gain?

Katherine Bagshaw

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By AnonymousUser
17th Nov 2004 14:46

Not in my book
You can't offset a Schedule A loss against general income unless it's from FHL or where there are capital allowances in computing income from an agricultural estate (s379A).

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By chriswalter1801
16th Nov 2004 14:31

Non Business Asset
Rental Income isn't classed as a business ( Except for a holiday home) so you will have non business taper releif to apply.

I don't believe you can offset the loss on rental. But you could definitely be able to offset the loss against any other income in the year.

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