I bought a property with a view to development but I've had to sell it at a loss of 7K. Can I use that against my income tax bill at all ? Obviously my acccountant will sort it out when he does my self assessment but really I'm just curious so I can sleep a little better tonight :)
My guess is no, but you should be able to use it to offset Capital Gains Tax.
I don't do anything subject to CGT :(
You could renovate a property... ohh.
In message , sks writes
If you bought with a view to developing and selling, it would be classed as trading and therefore relate to income tax. If it was with a view to developing and retaining as an investment, it would be a capital gain issue. It would be for you to show your intentions at the time of purchase, as to which way it would be classed.
However, as far as I can tell from the way my accountant deals with my affairs, the income lost may only be offset against income earned in a property development business... I may be wrong about this particular bit.
If it's your first one, then answer is definitely NO. Irma
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