Election for foreign losses to be allowable

Hi, As a remittance basis user, I'm looking to make election for foreign losses to be allowable. https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg25330a What kind of information should I provide on the letter and where should I send over? Thanks

Hi
You will give details/dates of the losses and send this to HMRC, PAYE & Self Assessment BX9 1AS.

Hi, Sorry but just to clarify, I'm NOT look to claim capital losses (as I don't have any gain this year) during this tax year, but just look to "make election for foreign losses to be allowable". Is there any special form, ie should I make claim on SA109, to use to make this election? Or simply just write a separate letter saying I want to make loss election and post it? Thank you.

Hi

If you complete a self assessment tax return, then you need to complete the supplementary page that relates to the losses, eg. SA108 (capital gains), SA103 (self employment) SA104 (partnerships) in order to declare the loss to carry forward.
If you do not need to complete a tax return, then you can claim the loss in writing, submitting supporting calculations to explain the loss.  
The losses can be carried forward indefinitely and set against a future gain.  You have 4 years from the end of the tax year in question, to claim losses.  
Any claim for losses older than that, will be rejected as being out of date.

Thank you

Is my understanding correct that: I have to "declare" the loss amount the same tax year the loss arisen. This amount has to be mentioned at the supplementary page of SA108. (since I have complete a tax return). Once I declare the loss, within the next 4 years I can "claim" this amount and set against a futures gain. So for example, if I have capital loss tax 22/23, I have to declare it tax year 22/23, and can claim this amount to set against a futures gain within next 4 tax year?

Hi,

You have to report the loss or gain within 4 years of it arising. There is no timeline on when it needs to be used.

Thank you.

Hi HMRC Admin 19, Regarding the capital gain or loss to be reported within 4 years of its arising, may I confirm if I sold out only some shares of one stock for this tax year and still keep some shares of the same stock, waiting for future disposals in coming years, should I need to report to HMRC about this partial disposal of shares in my self assessment tax return for this year? If yes, then how to report it in the calculation working sheet? (*In my knowledge, the calculation working sheet is to work out the calculation for the disposal of "whole shares" for one stock so as to identify if it is the capital gain or loss. But, in my case, it is only a partial share disposal for one stock, I am not able to know whether it is a gain or a loss as it is not an overall result.) OR, am I allowed to report all disposals (including captioned transaction and future transactions within 4 years of its arising) for that same stock by one go? (so that HMRC is able to get the full picture (calculation) for whole disposals of one same stock.) I am looking forward to receiving your expert advice for my above concerns. Thank you.

Hi KuenHK Lam,
It is only the loss that needs to be reported within 4 years to ensure it can be used. If you make a disposal that is over the annual exempt amount this needs to be reported in the tax year that it arises.
Thank you.

Hi HMRC staff, Thank you for your information. So, if the money I got from such disposal of partial shares of the overseas stock is below the annual exempt amount (GBP 6,000 for tax year 2023-2024), then I do NOT need to report this disposal in my self assessment tax return. Am I right? On the other hand, I unexpectedly got a loss of all shares of one stock due to the untrade status of these stock shares (because the stock company removed its stock code from Hong Kong Stock Exchange and change it with internal reference code, showing "untrade" status in my bank statement. In this regard, can I regard this untrade status (= no any market values shown in the bank statement) as capital loss? And, is it better for me to report this loss in the tax year it is arising? Thank you.

Hi,
For the loss, this needs to be used against any in year gains so you will need to report both to confirm the details.
Thank you.