Losing money on shares - what does offsetting mean?

Tracyk_2

I've had a couple of grands's worth of losses over the years. Does offsetting mean that if I want to sell my allowance ie £10,100 profit - I can add on my loss of £2,000. ie I can sell £12,100 profit?

ceeforcat

Sort of correct - you set your losses against your gains and then take off your exemption.

chrismac1

No, it means that if you have reported those losses wihtin 6 tax years of the disposal date they are carried forward indefinitely. Then if you ever have a chargeable gain which exceeds the annual limit - and bear in mind 10,100 was "under review" to go down to 1,000 or so back in June - you have those losses to offset against the net gain and hence the tax bill.

Tracyk_2

I haven't actually 'disposed' of them - they just went to 0p and some disappeared off my iii portfolio listings.

chrismac1

HMRC have an approved list of "Nil value" shares, if yours are on the list claim the losses on your return. Most decent brokers also can access this list.

Tracyk_2

Drat - just looked at the list - none of mine are on there!

Mikeyorks

chrismac1 wrote: »

No, it means that if you have reported those losses wihtin 6 tax years of the disposal date they are carried forward indefinitely. Then if you ever have a chargeable gain which exceeds the annual limit - and bear in mind 10,100 was "under review" to go down to 1,000 or so back in June - you have those losses to offset against the net gain and hence the tax bill.

You have 4 years to notify allowable losses - whether SA or otherwise. And you deduct the losses from gains made in the same tax year year first of all ....... before applying the annual limit.