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Posted Sun, 15 Dec 2024 10:29:59 GMT by JPH44 London
I have units in a carried interest partnership which are reporting a loss this year (T/E Apr 2024). In T/E Apr 2022 the units recorded a gain. I expect (based on cash realisations YTD) that there will be another gain for the 2025 ending tax year. I am wondering how best (or most easily) to manage this timing mismatch on my self-assessment reporting so that the correct net gain is taxed (in total over the years). Are the options outlined below possible/recommended? Can I delay reporting the T/E ending 2024 loss until next year (T/E ending 2025) to offset the gains then? Can I report the loss this year and have it carried forward to next year? (if so how...?) Is there a third option to reclaim tax paid on the 2022 gains? (and if so how?)
Posted Fri, 20 Dec 2024 15:00:29 GMT by HMRC Admin 32 Response
Hi,
Losses are claimed for the tax year that they arise. The losses can be carried forwards and set against a future gain in a future tax year.
Thank you.
Posted Fri, 20 Dec 2024 15:13:36 GMT by JPH44 London
Thanks for this but it doesn't quite answer my questions in full. If I have to report the loss this year - how do I ensure it carries forward? Specifically, is the capital loss saved as part of my self-assessment calculation in 2023/2024 so that it will be automatically offset against capital gains in 2024/2025 in the tax calculation or do I need to claim the loss in the self-assessment form itself in 2024/2025 as well as reporting it in 2023/2024? The reply in the thread below also suggests I can simply report the losses next year not this year. Is that correct? it seems simpler to do it that way round if so.  Thanks.

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Posted Mon, 23 Dec 2024 21:22:19 GMT by Mark Stephenson
With thanks to JPH44 for raising this issue, I to would be very grateful of how I can report the loss this year and it carried forward to next year. I can see and do this for "ordinary" capital losses, but I don't quite see how I do it for carried interest. Many thanks!
Posted Thu, 09 Jan 2025 14:27:36 GMT by HMRC Admin 20 Response
Hi JPH44 London,
Please refer to Capital Gains Tax: what you pay it on, rates and allowances
Thank you.
Posted Thu, 09 Jan 2025 14:46:01 GMT by Mark Stephenson
Thank you for this but it doesn't mention negative carried interest.
Posted Thu, 23 Jan 2025 18:23:52 GMT by HMRC Admin 20 Response
Hi, Mark,
You report this in the tax return and it is up to you to keep a record of it to apply it against a future gain.  
This does not happen automatically.
Thank you.

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