Unrealised trading loss in securities

I realized a net profit in securities tradings in 2021-2022. However, due to the downturn in the market towards the end of the tax year, I sustained significant unrealized loss in the stocks on hand. After taking into account the unrealized trading loss, the overall results for YoA should be a net loss. Is it allowable to make a provision for the unrealized loss and deduct it from the realized trading gain in 2021-2022?

Hi,

You can declare the overall loss on your 2021 to 22 tax return and carry forward the loss to a future tax year and set it against a profit.  

You will need to complete the capital gains section of the online return or SA108 if your are submitting a paper return.You can see guidance on losses on the helpsheet HS227 here:

HS227 Losses (2022)

Thank you.

Thank you for your reply. 1. To report the overall loss, may I add the total amount of realised capital loss and unrealised capital loss and put the sum in Box 27? 2. To carry the net capital loss (i.e. total capital loss in Box 27 minus the total capital gains in Box 26) forward, I would need to state the amount in Box 47 of SA108? 3. To show the computation of the realised and unrealised capital gains/losses, may I use a spreadsheet that can clearly set out the required information or must I use the form on page CGN11 of the Capital Gains Tax Summary (SA108) Notes ? Thank you very much for your help.

Hi,

Yes, please proceed as outlined:                      

Capital Gains Tax summary notes

Thank you.        

In that case, is it proper to put the sum of the total realised capital loss and the total unrealised capital loss in Box 27. In order carry the net capital loss (i.e. total capital loss in Box 27 minus the total capital gains in Box 26) forward, the amount needs to be stated in Box 47 of SA108? Many thanks.