Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 10 Oct 2024 19:38:52 GMT by barman_mo
I'm wondering how to report capital loss correctly to offset my future capital gains. Situation: Given I 1) obtained 15k capital loss and no gains in the 2023-2024 financial year 2) received 9k capital gain in the 2024-2025 financial year 3) presumably will receive some capital gain, for the example purpose, let's say 6k in the 2025-2026 financial year Examples of how to report the capital loss I thought about: 1) Report the total capital loss in 2023-2024 SA. Concern - will it be stored somewhere in the system for me to access it in the following years' SAs to offset the future capital gains? Will I see how much of this capital loss is left that is not used yearly? 2) Do not report capital loss in 2023-2024 SA. Report the total capital loss in the next year - 2024-2025 - SA, when I receive capital gains to offset the loss. Concern - I expect gains from 2024-2025 to be less than the loss from 2023-2024. What will happen to the remainder of the capital loss? 3) Do not report capital loss in 2023-2024 SA. Report the amount of capital loss equal to each future year (within 4(5?) years) capital gain to offset it. Question: How do we properly report the capital loss to offset these future capital gains that are less than the loss amount? Do any of my examples describe it correctly, or do you think it should be done differently?
Posted Wed, 16 Oct 2024 17:25:15 GMT by HMRC Admin 10 Response
Hi
Please refer here regarding losses If you make a loss
Posted Thu, 17 Oct 2024 13:41:57 GMT by barman_mo
Based on "You do not have to report losses straight away - you can claim up to 4 years after the end of the tax year that you disposed of the asset.", do I understand correctly that for the example above, I can: 1) do not report losses for the 2023-2024 year 2) report a 9k loss in the 2024-2025 year 3) report a 6k loss in the 2025-2026 year?
Posted Fri, 25 Oct 2024 17:12:33 GMT by HMRC Admin 20 Response
No.
You do not split the loss, the full loss still applies to the year that it arose but you have 4 years to notify HMRC  
Capital Gains Tax: what you pay it on, rates and allowances
Thank you.

You must be signed in to post in this forum.