My wife and I own three buy-to-lets. Due to financial circumstances, we decided to sell one of these in 2022. Unfortunately, we sold at a loss of £15,000. I have reported this disposal on my tax return (in the supplementary page SA108). I am in employment and pay tax at 40% on my wages. I have read that I can offset the loss against my PAYE income, but I can't see how I do that. Is it correct that I can claim a refund, and if so, how do I do it? 

Arthur Weller replies:  

Unfortunately, what you have written is incorrect. You may be mixing up two things. If someone makes an income tax trading loss, they can make a claim that the trading loss should be set off against chargeable gains as an allowable capital loss. See HMRC’s Capital Gains Manual at CG15801. However, if someone makes a capital loss, the only thing they can do with it is to set it off against chargeable gains in the same year as the capital loss, or if that is not possible, carry it forward to set off against chargeable gains in a future year. See CG15800.