Offsetting Losses on Shares against capital gain on property disposal ?

[davidod]

Hi

If I lose money on share sales can i offest this loss against a gain on disposal of a property (which I intend to sell this year)?

many thanks

 

[Bronte]

No, but you can offset a loss on the property against future property losses as far as I know.

 

[aetius]

Sorry, I dispute the above advice.

If your 2009 gain from property is a 'development land' gain, then that is ringfenced and cannot be set against 2009 gains arising from the sale of shares.

'Development' is a term for CGT and means in a nutshell property which has the potential to be developed.

 

[WaterSprite]

So, if OP is merely selling a house on which s/he will owe CGT, then s/he can offset against share losses?

I believe so, but just wanted to restate the question.

 

[aetius]

In such a scenario where CGT is owed on disposal of a PPR*, then i believe it can be set against losses arising from shares.

* could happen where a room was used exclusively for a trade.

(99% of the time PPRs wouldn't be classed as 'development land' but, to illustrate a point, a bungalow sold on First Avenue NY would be liable to GCT as it would be clear thatthe proceeds therefrom were as a result fo its dveelopment potential than as its potential as a family home/residence.

 

[davidod]

To be clear I am talking about a situation in which I dispose of an investment property (with no development potential, simply a 3 bed semi)..........is is possible to offset share losses against this gain?

btw the issue of PPR is a red herring as there is never CGT on that anyway..........

 

[John Rambo]

To be clear I am talking about a situation in which I dispose of an investment property (with no development potential, simply a 3 bed semi)..........is is possible to offset share losses against this gain?

btw the issue of PPR is a red herring as there is never CGT on that anyway..........

Not true.

If part of the home was used for business purposes there will be apportionment and most likely some CGT payable. Which is why claiming ESB etc at home as business deductions is generally a bad idea.

Similarly if the sale price of your PPR exceeds it's current use value as a residence, there is development land potential and you will be hit with CGT.

In other words there can be CGT on a PPR.

 

[davidod]

Not true.

If part of the home was used for business purposes there will be apportionment and most likely some CGT payable. Which is why claiming ESB etc at home as business deductions is generally a bad idea.

Similarly if the sale price of your PPR exceeds it's current use value as a residence, there is development land potential and you will be hit with CGT.

In other words there can be CGT on a PPR.

Thanks John Rambo, what i meant is that in the normal course of events CGT is not applicable.........

any advice on the issue at hand?
Can i offest loss on shares against CGT payable due to the disposal of a standard residential investment?

 

[aetius]

I think this needs to be spelt out nice and easy - yes, you can set off 2009 share losses against 2009 standard residential investment.

 

[davidod]

I think this needs to be spelt out nice and easy - yes, you can set off 2009 share losses against 2009 standard residential investment.

Thanks Aetius, the difficulty with message boards is always that of tone, a less generous person might interpret yours as condescending......I on the other hand accept it at face value so thank you for your advice.

 

[WaterSprite]

Thanks Aetius, the difficulty with message boards is always that of tone, a less generous person might interpret yours as condescending......I on the other hand accept it at face value so thank you for your advice.

Fwiw, I didn't interpret that as condescending at all - just that this thread needed to get back on topic to actually answer your question. Fair play to Aetius, I say.