Applying capital losses to gains on sale of Residential Property

I have recently sold a residential flat (not main residence) jointly owned with my wife on which a gain was made. In TY2021-22 I reported a significant capital loss on an investment purchasing a holiday let property where the developer subsequently failed and the development company was liquidated with no distribution to creditors (it turned out to be a fraudulent scam scheme). The liquidator reported in July 2021 there would be no assets recovered that could be distributed to unsecured creditors, although a law suit against lawyers representing the developer recovered some money as a result of a successful negligence claim. I have already offset this recovery against the original loss. My question is how to offset this loss against the gain made on the residential property. It's not a loss made in the current tax year, and your online CGT reporting form seems to imply that only losses made on residential property in earlier tax years can be applied against this gain. However, reading the online CGT manuals it seems that other losses from previous years can be applied against property gains - but it's complicated by the different tax rates applying to the asset on which the loss was caused. I would appreciate your unravelling of this, and into which section of the form should I enter the loss (i.e. whether to claim it as a loss this year - carried forward - or as a past year loss)

Hi,
You would treat this as capital losses brought forward and used this year.
Thank you.