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