Furnished holiday lets - loss when 1/2 share sold

HMRC guidance

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Hi all

I've been trying to find guidance from HMRCs manuals on this very specific query.

A couple purchase a furnished holiday let, and run up a £20k loss in the first tax year. On their respective tax returns, the loss is split as £10k each, and carried forward.

At the beginning of the subsequent tax year, the couple split and one buys the other out of their respective 1/2 share of the FHL.

In that situation, is there a way of retrieving the £10k loss from the party that has sold up, or is that effectively lost, considering the seller cant offset their loss against other income?

Thanks in advance

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By Wilson Philips
03rd Jul 2020 19:56

Unless they have another FHL property the loss is lost.

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