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Posted Thu, 23 Mar 2023 12:48:54 GMT by Matthew79
I have two questions in regard to capital gains/losses from selling shares : 1) in my 21/22 return I made £8k capital gains and £9k in losses. Am I correct to say I had to use all the losses even if the gains were below the £12.3K allowance , and hence could carry forward only £1k loss to the following years? Or could I have just carried over the entire £9k losses as my gains for the year were anyway below the 12.3k allowance? 2) In my 22/23 return I made 19k gains and 12k losses : do I have to use all the losses hence reduce the gain well below the 12.3k allowance (namely to 7k) , or can I just use 6.7k of my 12k losses to reduce my gains to exactly 12.3k and carry forward the remaining £5.3k losses to the following years? Thanks in advance for your help
Posted Wed, 29 Mar 2023 11:25:57 GMT by HMRC Admin 25
Hi Matthew79,

The legislation specifies that capital losses that arise in a tax year must be offset against any capital gains for that tax year.

As a consequence, this may mean that an individual’s annual exempt amount for that tax year may be lost.

CG18030 - Annual exempt amount: losses

Thank you. 

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