Unused Capital Allowances on Investment Property Sale

D

Delta

Registered User
Messages
68
I am due to complete the sale of a residential property in the coming weeks. I still have some unused Capital Allowances. Can I claim these against Capital Gains Tax on the sale or if not against rental income in this final year.
Regards, Delta
 
Delta said:
I am due to complete the sale of a residential property in the coming weeks. I still have some unused Capital Allowances. Can I claim these against Capital Gains Tax on the sale or if not against rental income in this final year.
Regards, Delta
Click to expand...
I'm in the same situation as Delta, selling a rental property with unused capital allowances. Would anyone have any guidance ?
 
White goods, barna shed, boiler, that I was rightly or wrongly claiming writing off as capital over eight years, and have a few years unclaimed remaining. Not huge money, but I would use it against CGT if possible.
 
Okay, well you need to Google balancing allowances / balancing charges.

Those items presumably still have a value, which is incorporated into the selling price of the property. Unless they are literally worthless, you won't have as much unused allowances as you might think.

And to answer your original question in the simplest way, no to claiming against CGT, and maybe against rental income tax (in which case it would be by way of balancing allowances).
 
Yes, might be possible against income, I came across this ?

Under section 305(1)(a), unused allowances are carried forward to be
deducted from an individual’s Case V income in future years; that is,
unused allowances carried forward are deducted in charging the income to
tax in that future period.
Section 305(1)(b) provides that an individual may elect to have excess
current year Case V capital allowances6 deducted from their other income
for a year of assessment.

Anyway a good point that the items could be considered included in the sale of the property, since it's a small amount I will pass on it.
 
You must log in or register to reply here.
Back
Top