Offsetting CGT Losses for married couples

Discussion in 'Tax' started by gnf_ireland, Jan 4, 2017.

  1. gnf_ireland

    gnf_ireland Frequent Poster

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    My wife has a sizeable Capital Gain Loss from an investment property sold in 2016 (accidential landlord).

    I know this can be offset against any chargeable capital gain I have in 2016, which are none.

    This loss is then carried forward against any chargeable capital gain she has in the future.

    However, my question is, can this chargeable loss also be offset against any chargeable gain I have in the future or is it restricted to only capital gains she has?

    We are jointly assessed for tax purposes for the last 5 years if that makes any difference
     
  2. Joe_90

    Joe_90 Frequent Poster

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    Accidental landlord would indicate that she lived in the house??

    Then the period she lived in the house plus 12 months will not be an allowable loss. So start there and see how much the loss is.
     
    Gordon Gekko likes this.
  3. gnf_ireland

    gnf_ireland Frequent Poster

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    @Joe_90 Yes, I do understand that the full capital loss would not be available due to her living in the house in the past. However 70% odd would be, so we are talking about 35-40k depending on what sale expenses are allowable.

    Between us we have no chargeable gains this year for CGT purposes, so the number is immaterial at the moment. Its more the principle as to what is allowed or not.

    I will create a separate thread in the property forum on what would be allowable or not !
     
  4. Gordon Gekko

    Gordon Gekko Frequent Poster

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    Yes it's allowable but Joe 90's point is a good one.
     
  5. gnf_ireland

    gnf_ireland Frequent Poster

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    @Gordon Gekko I am not dismissing Joe's comment in any way, and it is one I had factored into the calculation of the numbers. It was more around the principle which you have confirmed to me.

    As we now have this capital loss to contend with, it will influence our investment discussion going forward. We would be less likely to invest in EFT's which were subject to Income Tax, or funds subject to Exit Tax, when this capital loss is available for offsetting of any potential profits.

    Thanks to both of you for your assistance on this
     
  6. Meath Lady

    Meath Lady Frequent Poster

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    Are you saying a capital loss can be offset against any future capital gain. Not familiar with capital loss, but someone told me this week that if one wants to offset a capital loss against a gain they must have experienced the loss first followed by the gain. ( but both in the same year) Meaning they would have to sell their rented property with the loss earlier in the year and then sell their rented property with the gain in the same year.
     
  7. Gordon Gekko

    Gordon Gekko Frequent Poster

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    No, losses can be carried forward indefinitely.

    I can make a loss in 2017 and offset it against a gain in 2027.
     
  8. Meath Lady

    Meath Lady Frequent Poster

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    Thanks for that Gordon good to know