I should know this, so thanks for patience ! My client owned residential property to let and made profits each year. Then decided to sell and in the same tax year made capital gains on the sales and losses on property rental. Is there any way to offset the terminal loss (I was sure there is but cannot find it ). Thanks.
9th Dec 2019
Loss on rental property in year of sale
Residential Property sold ; capital gain but income loss - any relief ?
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Nope.
In case I hit the wrong button - thanks for your swift response.
If they have an ongoing rental business it can be rolled on, but if the rental business has ceased, then no.
That's not as daft as it may sound as they may have sold that property, but still be "in the game" and intend buying a new one if they anticipate substantial falls in capital prices. Had a few london landlords bail out 2 years ago and sitting on cash awaiting re-entry. Risky game to play.
Are you happy the costs that give rise to the loss are actually costs of the rental business, could some of them be costs arising after the rental business ceased? (intention to let ceased)