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Offsetting trading losses against Capital Gains

I am coming to the end of a particularly bad year of trading, and believe that I have made a loss of £20,000 for the tax year. I had to sell a rental property I own in the tax year to supplement my living expenses. I estimate that this will realise a capital gain after reliefs of £50,000. Can I claim relief for some of my trading losses against the Capital Gain on my rental property?

Yes, relief is available in this way, but you must first offset the trading losses against your total income for the tax year, and any excess can be extended and set against your chargeable capital gains for the tax year.

If you do not have any other income in the tax year this will result in a relief of £20,000 being claimed against the capital gain on your property of £50,000, leaving a chargeable gain before other reliefs and annual exemption of £30,000.

This will result in a significant fall in your Capital Gains Tax liability and your local TaxAssist Accountant can advise how to make the claim.

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0800 0523 555

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