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Posted Tue, 12 Mar 2024 17:32:28 GMT by BryanBoy Shaw
I sold a second property at a loss. I have no other capital assets. Can I offset that loss against my income tax liability?
Posted Wed, 13 Mar 2024 12:57:41 GMT by BryanBoy Shaw
I should add, the property wasn't a buy to let and I'm a private individual not a business.
Posted Wed, 20 Mar 2024 06:58:13 GMT by HMRC Admin 25 Response
Hi BryanBoy Shaw,
Capital losses can be deducted from any capital gains made in the same tax year.
If your total taxable gain is still above the tax-free allowance, you can utilise any unused capital losses from previous tax years.
Any remaining capital losses can be carried forward to future tax years.
Capital Gains Tax: what you pay it on, rates and allowances
Thank you. 
Posted Wed, 20 Mar 2024 09:50:52 GMT by BryanBoy Shaw
HMRC Admin 25 Thank-you for responding. Because I have no other Capital Assets I will never have a Capital Gain against which I could deduct the loss on the property. Hence my original question was can, I use the Capital Loss and offset it against my Income Tax liability?
Posted Mon, 25 Mar 2024 11:22:10 GMT by HMRC Admin 5 Response
Hi BryanBoy Shaw

No it can only be used for capital gains. If you are unable to use it, then it is lost.

Thanks

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