Abortive property acquisition costs, CGT loss c/fwd?

Abortive property acquisition costs, CGT loss c...

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Obviously abortive property acquisition costs are capital in nature, and therefore not tax deductible as a revenue expense for a property developer.

However, can you claim the cost as a CGT loss to carry forward (if not used in the current year) even though there has not actually been a physical asset disposed of? 

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By John - Horler Tax
29th Oct 2012 15:20

Are you sure?

 

If the trade is developing property for re-sale then the abortive costs are revenue in nature as are all similar costs.

If the trade is buying property for rent then the costs would be unallowable against the rent (as you say). 

You can only have an allowable loss for CG purposes, in these circumstances, if an asset has been disposed of.  No disposal means no loss.

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