Can a Capital Loss on a PPR be offset against a gain on Equities?

[greentree]

I wonder if anyone can answer this question. We are about to sell our PPR (Principle Private Property) and will incur a substantial capital loss based on the price when we purchased it.

Now, I know that any Capital Gain on a PPR is tax free but can a capital loss be offset against other capital gains? I have some shares that have performed very well over the last few years and now would be a good time to sell if I can reduce the CGT.

Any advice appreciated!!

 

[T McGibney]

Now, I know that any Capital Gain on a PPR is tax free but can a capital loss be offset against other capital gains?

in short, No. A capital loss on a CGT-exempt asset is not allowable against gains on CGT-liable assets.

 

[boskonay]

If you buy a new PPR and sell the old one a few months later, does the old PPR remain as such for cgt purposes?

 

[T McGibney]

Only for 12 months.

 

[boskonay]

Thanks!

 

[DB74]

Should probably clarify that if you do decide to keep the original PPR for more than 12 months and then sell it, only a portion of the loss will be allowed for CGT purposes

eg

You own & live in the House for 3 years (36 mths)

You then move to a different PPR but keep the first house for a further 14 months

Because the last 12 mths of ownership are deemed PPR, Revenue will consider that 48 of the 50 mths of ownership are PPR so you will only be entitled to use 2/50ths of the actual loss to offset against any Capital Gains.

Without getting into a discussion about house prices etc, I can't see how holding on to a property for a further 12 months purely to offset a Capital Gain makes financial sense. You could potentially lose more than the CGT saving if the property decreases in value any further.