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Posted Sun, 02 Jan 2022 17:40:29 GMT by insch
I am completing my self assessment. I have made some capital losses in the tax year (lost shares and failed property investments etc) but I won't need to offset them against profits this year. I want to make sure that I can carry these losses forward though and use them in future years. I can't quite work out how to put just losses in the capital gains section of the form. Any help appreciated.
Posted Wed, 05 Jan 2022 14:59:31 GMT by HMRC Admin 19
Hi,

You can see guidance here on completion of the capital gains section: 

Self Assessment: Capital gains summary (SA108)

When you report the disposal there will be a box for you to record your overall loss.

Thank you.
Posted Mon, 10 Jan 2022 18:47:45 GMT by insch
Thank you. I have another question about losses. I have several streams of income, including self-employment. I have a small profit in that for this year but have previous year's self-employment losses to offset. I had previously put them in the 'Income Tax Losses' pages as I have done this year. But I can't now see how to offset some of that previous year's self-employment loss against my current self-employment profit. I tried under 'Earlier years' losses (which can be set against certain other income in the tax year 6 April 2020 to 5 April 2021)' but it didn't register in the tax calculation. I then put the amount of previous losses not used and to be carried forward in "Unused losses carried forward". Can you please advise? Do I need to enter previous year's self-employment losses elsewhere? If so, where? And how do I offset some of them against this year's self-employment profit? Thanks
Posted Mon, 10 Jan 2022 18:55:58 GMT by insch
ps the section I have put these previous self-employment losses in is: "Income Tax Losses on other UK income only "
Posted Tue, 11 Jan 2022 08:39:10 GMT by insch
pps I have now added some of my previous year's self-employment losses into "Loss brought forward from earlier years set-off against 2020-21 profits" within the Self Employment pages. But for some reason it is not then deducting that figure from my profit. The tax calculation still uses the full profit figure.
Posted Tue, 11 Jan 2022 12:05:34 GMT by HMRC Admin 17

Hi,
 
If you are using any of these losses then you would enter that amount under "losses  brought forward from earlier years set off against this years profit".

The remainder of the loss will then be recorded under the "total loss to carry forward after all other set offs" box. 

Thank you.
Posted Tue, 11 Jan 2022 12:43:32 GMT by HMRC Admin 17

Hi,
 
The profit will still show on the calculation but underneath it should then have a line for tax loss relief of the same figure.

This means one will balance out the other and no tax will be charged.

Thank you.
Posted Wed, 12 Jan 2022 08:51:07 GMT by insch
Thank you. I now see that the loss I am offsetting from previous years has gone into 'Income tax relief'.
Posted Fri, 14 Jan 2022 08:19:29 GMT by insch
I have a further question in relation to my capital loss question. One of the capital losses I made was from unlisted shares in a company where the director was subsequently declared bankrupt and the company ceased trading. I have been advised that my shares now have no value but this verbal statement came from the bankrupt director. I have nothing in writing about this. I want to offset this loss against income in this tax year. I understand that I can do this because this is a capital loss in shares. Can you please confirm this and what kind of proof I would need with regard to the loss? Thank you.
Posted Mon, 17 Jan 2022 14:11:28 GMT by HMRC Admin 24
Hi insch,

Please see guidance, regarding negligible vlaue claims to create a loss and then how to offset this against other income.

Negligible value claims and Income Tax losses on disposal of shares (Self Assessment helpsheet HS286)

Thank you.
Posted Mon, 17 Jan 2022 16:08:58 GMT by insch
Thank you. That's helpful. It doesn't really talk about documents that might be required though. Since these shares ended up having no value they were never sold. The confirmation of zero value only came verbally from a director that has since been declared bankrupt. Is there a way of showing proof of zero value of unlisted shares? Or is this not required by HMRC?
Posted Tue, 18 Jan 2022 11:12:51 GMT by HMRC Admin 17

Hi,
 
You do not need to provide evidence when submitting the return that the shares have become of zero value. 

Thank you.
Posted Mon, 24 Jan 2022 16:04:18 GMT by insch
Thank you. It was more for my records in case there was ever a request for evidence of the loss. I'll see what I can get.

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