Forex Loss and Gain

Hi there, From 2020 to 2023, I ended each year with a net loss. However, this year (2024), I have been making profits and expect to finish the year in profit. I did not submit any tax returns for the losses in previous years because I was under the impression that only profitable years are taxed, so there was no need to report the losses. I've recently heard that previous losses can be used to offset the tax on future gains. Could you advise if I can still submit claims for the losses from those years? Also, would there be any penalties or fines for not submitting the losses earlier? Thank you!

Hi,
You need to notify HMRC of any Captial Loss within 4 years of it arising in order that it can be used at a later date.
As you have not needed to file returns, you will need to send in a letter giving details for each year along with a computation on how you arrived at your figures.
Ssend this to
HMRC PAYE & Self Assessment
BX9 1AS
Thank you.