Offset losses from property sale

Hello, I wish to report a loss from property sale in form SA108. I purchased a flat for £49,000 in 2015 and sold it for £7000 in 2022. In form SA108, I think that I need to enter 7000 in box 4 (Disposal proceeds), then enter 42000 in box 7 (Losses in the year) followed by -420000 in box 9 (Total gains or losses on UK residential property reported on Capital Gains Tax UK Property Disposal returns). Is this the correct way to do it and do I need to enter anything else on the form? Thanks in advance.

Hi,

Box 4 would show how much you sold the property for.  

Box 5 will show the allowable costs, purchase price plus buying and selling costs and certain improvement costs. The difference will be a loss, which is shown in box 7.   

On page CG3, in the section, losses and adjustments, boxes 45 to 52, you would show what you want to do with the losses. In general, capital gains losses can be carried forward indefinitely to a future tax year, to be set off against any future gains.

Thank you.

Thank you for your reply but after entering the details, the amount of tax I owe has not changed. This is what I entered in Form SA108: Box 3 - 1 Box 4 - 7000 Box 5 - 51000 Box 7 - 44000 Box 45 - 3171 Box 47 - 40829 In Box 7 I entered 3171 as I want to use this amount to offset the taxable income and in Box 47, I want to carry over 40829 for future self assessment. I don't know if this is right but when I use the tax software and go to calculation, the amount of tax owed is still the same. No matter what numbers I enter in box 45 and box 47, it doesn't affect anything! Please can you help?

Hi

Capital gains losses, cannot be set against income tax liability, which is why the amount due does not change.  
Box 45 is for capital gains losses declared in a previous tax year and used against capital gains declared on the SA108 in box 6.  
Capital gains tax and income tax are two separate taxes, that do not mix.  

Thank you