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Losing money on shares - what does offsetting mean?

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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?

Comments

  • ceeforcat
    ceeforcat Posts: 1,131 Forumite
    Sort of correct - you set your losses against your gains and then take off your exemption.
  • chrismac1
    chrismac1 Posts: 2,585 Forumite
    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.
    Hideous Muddles from Right Charlies
  • Tracyk_2
    Tracyk_2 Posts: 345 Forumite
    I haven't actually 'disposed' of them - they just went to 0p and some disappeared off my iii portfolio listings.
  • chrismac1
    chrismac1 Posts: 2,585 Forumite
    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.
    Hideous Muddles from Right Charlies
  • Tracyk_2
    Tracyk_2 Posts: 345 Forumite
    Drat - just looked at the list - none of mine are on there!
  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    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.
    If you want to test the depth of the water .........don't use both feet !
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