CGT : Can you offset losses on SHARES against gains made on a PROPERTY?

[Relaxer]

CGT : Can you offset losses on SHARES against gains made on a PROPERTY?

This year is an unusual one for me in that I sold a residential property which was not my main home and as such incurred a substantial CGT liability. The property was sold in May ’22 and the CGT liability calculated and paid within x days as required. Most of the gain attracted the higher 28% rate.

I have a portfolio of investments which includes about 8 lines which have made losses in aggregate about £8k. Does it make sense for me to sell all of these and offset against the property gains to reduce my CGT bill? As I have already paid the CGT, I assume a refund would be paid after submitting my tax return. How would this refund be calculated given that the rates for property (28%) and shares (20%) are different? (28% of 8k? or 20% of 8k?)
I assume there is no point me selling any further (profitable) assets this year as I would be catapulted straight onto the higher 20% rate because of the previously realised property CGT liability.

[pochisoldi]

Assumption:
You only had a gain on the property, and you made no gains on shares (makes the calculation easier).

Your 8k shares losses reduce your property gain by the same amount.
Recalculate the gain on the property after deducting the share loss, and any other carried forward losses.

Deduct that figure from the tax already paid to determine the refund.

Pochisoldi

[Lootman]

I sold a residential property which was not my main home and as such incurred a substantial CGT liability. The property was sold in May ’22 and the CGT liability calculated and paid within x days as required. Most of the gain attracted the higher 28% rate.

I sold a few rental properties in the 2000s, on which CGT was of course due.

I never paid the tax within X days. Perhaps that was not a requirement back then? Or perhaps it is not monitored or enforced? Either way I merely declared the property gains during preparation of my tax return the following year. And as noted, the losses on share positions helped offset the CGT due on the property gain on a net basis.

[modellingman]

I sold a residential property which was not my main home and as such incurred a substantial CGT liability. The property was sold in May ’22 and the CGT liability calculated and paid within x days as required. Most of the gain attracted the higher 28% rate.

I sold a few rental properties in the 2000s, on which CGT was of course due.

I never paid the tax within X days. Perhaps that was not a requirement back then? Or perhaps it is not monitored or enforced? Either way I merely declared the property gains during preparation of my tax return the following year. And as noted, the losses on share positions helped offset the CGT due on the property gain on a net basis.

If I recall correctly, the rules for reporting a property disposal changed wef 6 April 2020 and initially required the disposal to be reported and CGT paid within 30 days of the disposal. Prior to that the requirement to report was via the annual self-assessment return.

The time period subsequently changed to 60 days. The CGT pages of the self-assessment return must still also be completed for such disposals. This is because the 60 day period will typically be within the tax year, requiring an estimate to be made of income for the tax year in order to determine the tax rate applicable to the gain made (18% or 28% or a blend of the two). The SA return will generally report actual income for the year allowing for a revised calculation of the CGT due.

modellingman