JFB

Without wishing to state the obvious, you will only be able to use the loss realised OUTSIDE your ISA as the loss within the ISA stays within te ISA and cannot be used elsewhere. As metioned above, losses can be brought forward to subsequent years so you could sell the property next year and still have use of those losses then.

You may even be able to avoid some or all of the CGT if you lived in the house as your primary residence for a reasonable period of time before letting it out. This is a technical point which you should explore further with the Inland revenue or a helpful accountant.

Jerome

[Edited by JFB - 11/1/2002 5:57:06 PM]

paul w

Does anyone actually know what the score is here and not just think they do as i think i do but probably haven't got a clue.

Sold some shares this tax year that i bought 3 years ago,some were held in an isa some weren't,took a slight loss on them *cough*. Bought a house 18 months ago and have let it since,i now want to sell that house in this tax year to offset my gain against my share loss and hence pay no cgt,is this correct?? can i carry the loss over to other years or do i have to do it this tax year as i made the share loss this year.

Any input apprieciated.



Cheers Paul

P20SPD

iTrader: (1)

You can carry the CGT loss forward. You also have an annual CGT exemption of £7700, which reduces any gains you make.

paul w

Cheers guys,

Jerome,are you saying that the loss i took in the isa's that are now closed cannot be taken into account at all?I've took the allowance for myself and wife into consideration,i've never lived in the house as it is a buy to let so want to avoid paying any tax,i take it the tax would be 23% my higher rate and can i only carry the loss for one year.

Thanks Paul

JFB

Paul

Losses realised within ISAs cannot be offset against gains elsewhere. That's the cost of the tax free wrapper allowing you tax free capital gains but alas if it goes wrong, your losses remain within the plan.

The CGT rate payable is your higher marginal rate of tax and in your case seems to be 23% but be careful because if the capital gain is significant after deduction of allowances, you maybe forced into 40% bracket.

Losses AFAIK may be carried forward indefinitely as long as they are formally declared to the Inland Revenue within five years of being realised.

Again, you should contact an accountant to verify these points as the tax legislation is constantly evolving (being knackered by Mr Brown!) so better be safe than sorry.

Jerome (Not an Accountant)

paul w

Right then,is this correct i can carry that loss forward indefiniately cos if thats the case then i can use up all my losses over the last 3 years and pay no cgt.
Please dont tell me to see an accountant cos i dont have one and someone out there must know.

Thanks Paul

JFB

Yes losses realised outside PEPs and ISAs can be brought forward indefinitely. You have to inform the Inland Revenue of the details of those losses on the appropriate Capital Gains Tax form which is separate from the normal income tax form. If you are back tracking three years you will probably have to declare those losses on individual returns for those tax years but the Inland Revenue will be able to tell you what forms and proof (contract notes etc) if any are required.

Jerome

Tiggs

phone the IR, they are very helpfull. (and if they **** it up you are in a better position than saying "but this bloke called Super Dump Valve who post on Scooby net and his dad's mate once meet an accountant, well he said....."

paul w

Thanks guys LoL @ Tiggs,I have a house in my wifes maiden name do you know if i can sell this house and use hers and my allowance on this as well as my loss now that we are married although it is still in her maiden name as i bought it before we got married.

Cheers Guys

JFB

Now you are getting technical! If you were referring to shares, I could answer but I would only be guessing when it comes to registration of property so I'll just grab my coat on the way out!

Speak to the Inland Revenue.

Jerome

steve em

PAUL .think you have my Mrs email address . Lynn deals with CGT , Dont know if you remeber but she is a trust and tax lawyer ,,,, let her know ya problem and mrs will give you advise. Kev has ADDY so drop him a line. NOT posting on net as getting spam

steve

stephen emery

password found drop me a line paul
steve

paul w

Nice one steve,will send you mail later today mate,that will be good as i dont really want to phone the IR as they'll want to know everything.

Cheers Mate and thanks all.