Capital Gains Tax losses

Trusts Discussion
1

I am dealing with an Estate where probate valuation has been agreed for IHT at £220k for a property. Property sold for £220k and sale expenses were £4k, giving a loss of £4k compared to IHT valuation. In the same tax year, after the annual exemption, sale expenses and allowances, a gain was made of £2k in relation to shares. Can the £4k loss be deducted from the £2k gain?

Thank you in advance.

Alex Crump
Hedges Law

2

I don’t see why not.

Paul Davies
DWF LLP

3

Capital gains and capital losses arising in the same tax year on sales during the administration period by executors may be offset.

However, capital losses are offset against capital gains for the same tax year before any deduction for the annual exempt amount (the latter amount only available for tax year of death and succeeding two tax years).

Malcolm Finney

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