Calculation of loss on second property

Can you please clarify the loss calculation in a btl sale - essentially can the sale and purchase costs be included in the loss e.g. Property purchase price 100k Purchase cost 4k Property sale price 90k Sale cost 3k Is the loss 100-90-4-3 which is 16k or is the loss 100-90 which is 10k

Hi FaisalNasir,
Yes the purchase costs and sale costs can be included as a deduction when working out any capital gain/loss.
Thank you.

 

Dear Sir, Does the instalment interest count as cost? If oversea property causes exchange rate, the exchange rates should apply to each payment? May I have example? Best regards

Hi edmund,
Tax relief on mortgage interest for the rental property can be claimed in a Self Assessment tax return.
Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.
You are free to use the rates held here or from another source.
Exchange rates from HMRC in CSV and XML format
Thank you.