Applying Capital Losses Against Gains in Different Tax Years

I have a question regarding the use of capital losses from previous years to offset gains in the current year. Example: Tax Year 2023/24: Profit: £6,000 Loss: £5,000 Capital Gains Tax (CGT) allowance: £6,000 Since my profits did not exceed the allowance, I did not pay any CGT, and the loss of £5,000 was unused. Tax Year 2024/25: Profit: £7,000 CGT allowance: £3,000 My question is: Can I carry forward the £5,000 loss from last year and apply it to this year's profit of £7,000? If yes, would this mean: I deduct the £5,000 loss first, leaving a taxable gain of £2,000, which is covered by this year's £3,000 allowance, resulting in no CGT owed? Or Should the unused CGT allowance from last year (£6,000) have been used to "absorb" the loss, meaning I cannot carry forward the full £5,000 into 2024/25? Thank you.

Hi,
This forum is for general queries only and is intended to help you self-serve. We are unable to provide specific advice tailored to individual circumstances.
You may wish to contact our Self Assessment team or consider seeking professional advice.
Self Assessment: general enquiries
Thank you.   
 

Not HMRC...no, IN YEAR losses are ALWAYS used against in year profits first, thats the rule, regardless of the exemption situation, so the loss for 23/24 of £5k is auto set against the profit of £6k in year, leaving you £1k profit of the allowance, balance of allowance unused and cannot be c/fwd, that is the hard and fast rule, losses in year must be used against profits in year FIRST. 24/25 you have no loss b/fwd as a result of the above, so Profit is £7k less £3k allowance, tax due on £4k.

Thank you for your answer, @Clive Smaldon. @HMRC Admin 12, this is 100% a fictional example just to explain the problem. Can you please answer the question in general terms rather than using the numbers? Could you simply confirm or deny what Clive already explained?

Hi,
The repsonse from Clive is correct. You can see further guidance here:
Capital Gains Tax: what you pay it on, rates and allowances
Thank you.