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Posted Thu, 25 Jan 2024 09:07:04 GMT by Jon Carr
I have a capital gain on property which I have already reported and paid tax on. I now have a small capital loss on listed foreign shares which I want to use to offset this gain a little. Gains and losses on shares are taxed at different rates so how does the calculation work? I am a basic rate tax payer and made £30,000 gain after the allowance so paid £5400 in tax at 18%. If I now make a £10,000 loss on shares at 10% does the new combined figure get used and some kind of blended rate or do I simply have the £1,000 loss (£10,000 at 10%) subtracted from the £5,400 already paid to leave a reduction of £1,000 claimed back through self assessment?
Posted Fri, 26 Jan 2024 00:53:22 GMT by Alan Webb
The tax on gains is at different rates depending what is sold. Losses are set against gains and reduce the net gain chargeable at relevant rates. If your property gains and share losses are in 23-24 (arising post 5/4/2023) you will have property gains for the year of £36k and share losses of £10k leaving a net gain (after annual exemption £6k) of £20k. taxable @ 18% as arising on the property. Allocate the loss in the most beneficial fashion rate-wise so if instead you had: Property gain £30k, share gain £6k & share losses £10k the loss and annual exemption go against property gain. You still have a net gain after annual exemption of £20k but that is taxed £14k re property @ 18% & £6k re shares @ 10%
Posted Mon, 29 Jan 2024 12:50:27 GMT by HMRC Admin 19
Hi Jon Carr,

You can see an example below of how to calculate your Capital Gains Tax liability in a year in which you have:  
  •  a capital gain on the sale of residential property                                        
  •  a capital loss on the sale of shares                                                                                                                     
Example 1– gains of the year exceed losses of the year

Thank you.

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