Timeshare purchased years ago, sold at a considerable loss. Can the loss be used to offset capital gains for CGT purposes?
Assuming the timeshare was a licence to occupy the premises for one week a year, this represents a saleable asset which brings into play CGT legislation. Timeshare in perpetuity is not considered a wasting asset. It therefore seems that any capital loss could be offset against other gains. Capital loss is difference between proceeds received, net of costs and the original cost, inclusive of legal fees. If a gross loss was realised, then the indexation allowance need not be considered.
