Gwyndy

Two more related questions about CGT, please – 1. Calculating capital gain after rights issues and consolidation Buy 1000 shares in Company A - total cost £15657. Bonus issue 2:1 (2000 shares) at no cost – holding now 3000 shares. Rights issue – purchase 1833 shares at total cost £3666. Total holding now 4833 and total cost of shares to date - £19323. Bonus issue 1:40 (120 shares) at no cost – holding now 4953 shares. Consolidation 1:10 at no cost – holding now reduced to 495 shares. Sell 185 shares – total proceeds £476. Holding now 310 shares with total cost of £19323 - £476 = £18847 Current value of remaining shares is approx. £865. I now wish to sell these shares (or part) and use the loss to offset other gains. Am I correct in thinking that, despite the various bonus issues, rights issues, and consolidation, the calculation of the capital loss is legitimately the total ‘original’ cost of the remaining 310 shares, £18847, minus the sale proceeds, £865 – i.e. £17982? 2. Calculation of CGT loss carry-over Current year gains - £11889 CGT loss carried fwd - £2000 Annual exempt amount (2024/25) - £3000 If my calculation of the capital loss in Company A above is correct and I sell all the shares and offset this loss against current year gains, what is the carry-over of loss to future years?

My understanding is that, provided you have reported the losses in previous tax returns, and provided that they have not been used to offset gains in earlier years, you can carry them forward indefinitely. This is referenced at https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg15800#use-of-losses-general-rules. I am not a tax expert so please do wait for confirmation from one of the experts in this forum.

Thanks Admin 5 - useful reply. The dilemma is transfer of shares to investment ISA to fully utilise the £20K allowance versus fully utilising the CGT allowance. Needs careful thought!

I am struggling to understand the CGT rules for carrying forward a CGT loss and would appreaciate some guidance. In 2022/23 I sold some UK shares (3 transactions) - A. Total gains - £12944 B. Total losses - £10737 C. Losses brought forward from earlier year - £2229 D. CGT allowance - £12300 The software that I use for my SA return showsthat I have used £2207 (A-B) of the annual exempt amount and that I will only carry forward the earlier years loss of £2229. In order to hit the £12300 CGT allowance I only need to 'allocate' a loss of £630 (A-D) so have I 'lost' the balance of the £10737 losses or can I carry forward the balance of £10093 (B-£644)? Any guidance would be most welcome.