apptimise

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?

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.