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CGT Loss Relief on sale of BTL Property

CGT Loss Relief on sale of BTL Property


I am selling a couple of BTL properties, as many people are, now that there is a quadruple whammy of additional costs/negative changes to the legislation.

Some years ago I purchased another property off plan and paid a 10% deposit. In the end I decided that the investment opportunity was not as beneficial as I had originally calculated and walked away losing the 10% cash deposit.

At the time I was advised to record this as a capital loss on my self-assessment return by a friend.

However, I am now unsure whether this is a true capital loss and would appreciate some guidance.

It seems strange that I have lost £x on an capital acquisition and I can't get any relief for this. I paid £x and it is now worth £0.

If it is not a capital loss is there anyway to get relief for this lost money?

Sorry if I am missing something very obvious here.

Many thanks in advance.



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By Duhamel
24th Feb 2016 16:36

It wasn't a capital acquisition because you never acquired an asset. Therefore, in simple terms you could not have generated a capital loss.

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24th Feb 2016 17:30

Many thanks.

And no option down a negligible value claim or similar?

Portia: My cat's name is Mittens.

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24th Feb 2016 16:48

A prove there is not a god question.

Respondent: The legislation does not let you do that. OP: Show me where it does not let you do it.

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24th Feb 2016 17:49

No. There is no asset that you can be deemed to have disposed of and reacquired at market value. Unfortunately I am unable to point you to where it does not say otherwise.

I am happy about your cat.

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