| Re: Property Loss [message #390737] |
Di, 30 Mai 2006 21:07 |
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In message <TPSdnfvK9N9nyuHZRVnyqQ [at] eclipse.net.uk>, sks <sks [at] privacy.me>
writes
>I bought a property with a view to development but I've had to sell it at a
>loss of 7K. Can I use that against my income tax bill at all ? Obviously my
>acccountant will sort it out when he does my self assessment but really I'm
>just curious so I can sleep a little better tonight :)
>
>
If you bought with a view to developing and selling, it would be classed
as trading and therefore relate to income tax. If it was with a view to
developing and retaining as an investment, it would be a capital gain
issue. It would be for you to show your intentions at the time of
purchase, as to which way it would be classed.
However, as far as I can tell from the way my accountant deals with my
affairs, the income lost may only be offset against income earned in a
property development business... I may be wrong about this particular
bit.
--
Richard Faulkner
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