Partnership capital loss sale of hotel v income

Conditions for capital loss v income

Didn't find your answer?

Due to COVID hotel business sold at less than original cost no other gains to set against so can it be against income as got insurance payout

Replies (10)

Please login or register to join the discussion.

avatar
By Wanderer
31st Jan 2022 17:38

Cait wrote:
Partnership capital loss sale of hotel v income
Conditions for capital loss v income

Due to COVID hotel business sold at less than original cost no other gains to set against so can it be against income as got insurance payout

So little information, so many questions.
Thanks (0)
RLI
By lionofludesch
31st Jan 2022 17:41

Tell us your story.

Thanks (0)
avatar
By SXGuy
31st Jan 2022 18:28

Basically what you do is..

Thanks (0)
avatar
By bettybobbymeggie
31st Jan 2022 19:21

I vote no

Thanks (0)
By williams lester accountants
01st Feb 2022 09:09

Maybe, post more info......

Thanks (0)
By williams lester accountants
01st Feb 2022 09:09

Maybe, post more info......

Thanks (0)
avatar
By Tax Dragon
01st Feb 2022 09:23

Partnership.

So no.

Thanks (0)
Head of woman
By Rebecca Cave
01st Feb 2022 10:30

The loss referred to needs some analysis, and further information in order to give a sensible answer.
How much of the loss relates to the property and how much to the business? Was the hotel business sold as a business or were the individual assets sold? Capital gains and losses incurred by partnership will be gains or losses of the individual partners, as the partnership is transparent for CGT puposes.
A capital loss can not be set-off against income of the partners or against any income.

Thanks (1)
Replying to Rebecca Cave:
avatar
By Cait
01st Feb 2022 14:46

Business (husband and wife partnership) sold as going concern (hopefully for new owners) and was meant to be sold in April 20 but because of lockdown and COVID re-negotiation with purchaser so no sale until October. Had to get legal with insurers and eventually got COVID insurance payout. Now fully retired. Capital Loss share has been reported on each individual tax return.

Thanks (0)
Replying to Cait:
avatar
By Hugo Fair
01st Feb 2022 22:25

But your OP says "can it (the loss) be against income as got insurance payout?"
And as Rebecca says "A capital loss can not be set-off against income of the partners or against any income."

It's hard to work out what you think the insurance payout has to do with anything (as we don't even know what it was for ... presumably loss of earnings?)
More importantly how do you aim to achieve a first - by claiming a capital loss against taxable income? - or are you asking something else entirely?

Thanks (1)