UK Buy To Let CGT Losses

greeneman

Registered User
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I am about to sell a UK property for a €40K capital Loss.

I have been paying rental income tax every year in Ireland in respect of this property.

Can I use this CGT loss against other Irish CGT gains ?

Separately in Ireland, I have €75K in rental losses accumulated from earlier years.
I do not have any Irish Rental income now.
Are these losses significant in making an investment decision in Ireland. I can see a commercial property opportunity that will bring in 16,000 in rental profits per annum. Capital cost is 300K. No interest. Tax at 40% = 6400. I would have shelter for 11.7 years.

I prefer shares but would like to use up these accumulated losses.
Is my thinking in the right direction ?

Thanks for guidance. As you can see from above I have made some mistakes. But I want to keep trying.
 
Hello,

Capital Gains Tax

The capital loss on the uk property can be used to shelter gains in that period and gains earned in future years/ periods ..

Rental losses

To my mind Your rental losses Can be brought forward and used against your rental profits.

That seems like an incredible rental yield .. almost 19%.. so even if you didn’t have the losses it would be a very good investment based on those figures..
https://www.revenue.ie/en/property/rental-income/irish-rental-income/rental-profit-and-losses.aspx
 
Thanks Mary
Great news on the UK Property CGT loss.
Because I could not use my Irish Rental losses against UK rental profits I was afraid that the same would apply to CGT.

Re: Rental Yield... I can rent the property for 20,000. I reckon I will have about 4,000 in costs each year. Net profit of 16,000. On a property that costs 300,000 I make that to be a 5.3% yield. Don't know where you got 19%. I expect I am doing some calculation wrongly. BTW this is a remote rural commercial property.

I have a self administered pension with Standard Life. It's in a few equity based funds. Medium risk. After charges, I have got a 6% return each year on average. To my mind that is good, without being great. I am aware that medium risk gets mediocre returns.
I thought I would try the residential property game again, I have young adult children paying huge rents up in Dublin. I think one of them should rent from me.

I thought the pension fund and the rental losses would be a good starting off point. I expect I need to see a financial adviser. Just trying to educate myself in advance.

I am thinking of buying something in the childs name, (gift tax ?) and getting her to collect rent on the rent a room system and pay that rent to me. I need to do a lot more research on this.
Thanks for your help. This is a great forum because of people like you.
 
Hi

Apologies I calculated it the wrong way ., I now get 5.3% !!

The uk rental and Irish rental are treated under different case/ classes for tax purposes.. gains and losses are treated just under cgt with no separating classes..

Happy to help.,

I would think the situation with your child will be tricker than you imagine .. I think there was a post here over the past 2 to 3 months in that very topic ..
 
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