Capital gains losses

jimmo

Just to tidy up your original question you have now established that you have a Capital Gains loss of approx £8,000 for 2009/10.
You do have a time limit of 5/4/14 to claim that loss but if you completed a 2009/10 Return the correct procedure for now is for you to amend your 2009/10 Return.
According to the HMRC website if you submitted your 2009/10 Return on-line you can still amend it on-line.
http://www.hmrc.gov.uk/sa/correct-repay.htm
If you can do so that would probably be your best option but hold that thought for now.
Moving on to your "final" question are you saying that you have a separate Capital Gains loss of £7,500 in "say 2007/08" or are you having a laugh at saddoes like me who try to help others on forums like this one?
What on earth does "say 2007/08" mean?
Whilst I can appreciate people's reluctance to share precise details on a forum that is the price you have to pay.
Give us the full picture and you will probably get quality advice. Otherwise seek professional advice and be prepared to pay for it.

John_Pierpoint

I think the Original Poster is just trying to say:

If gains less than 10,100 in a year are ignored for CGT perhaps
losses less than 10,100 are similarly ignored?

If a loss of (say) 7,500 can be carried forward, and then there are gains of (say) 10,101 reported does the 7,500 loss automatically get used up against the 10,101 gain OR does the tax payer have the option of keeping the loss and trotting it out when he has an appreciable gain to report of (say) (10,100 & 39,900 50,000.

I might be wrong but I think the original poster deserves the benefit of the doubt.

John

PS
Here again I might be wrong but I think the Original Poster could have a part time share portfolio on which realised capital gains, if any, have been below the 10,100 annual exemption. So the hassle of calculating gains (and until recently messing about with indexation/years of ownership) has not been an issue.

00ec25

in any one year where you have a taxable gain >personal allowance you offset only enough losses to reduce you net gain to your personal allowance for that year

if you do not have taxable gain > the personal allownance for that year then you do not offset losses but merely carry them forward. eg:

07/08 loss 7,500 other gains nil so losses c/fwd 7,500

08/09 gain 11,000 - 9,800 allowance 08/09 = 1,200 - loss offset 1,200 = net taxable gain nil , residual losses c/fwd 6,300

09/10 gain = 500 - allowance for 09/10 of 10,100 = nil net gainl so residual loss c/fwd 6,300

10/11 gain 50,000 - 10,100 (allowance 10/11) = 39,900 gain - loss b/fwd 6,300 = taxable gain 33,600 losses c/fwd = nil

jimmo

John_Pierpoint wrote: »

I might be wrong but I think the original poster deserves the benefit of the doubt.

So do I. Otherwise I wouldn't have bothered replying. For those that need help it must be a bit of a leap of faith baring your soul on a forum but if they do anything less they run the risk of getting an answer to their question rather than a solution to their problem.
I fully recognise that those who are tax naive will probably struggle to ask the academically correct question for their problem but if they hold back on details they are selling themselves short.
When the OP is given a solution to his original problem and then brings up something new which he hadn't thought of before that may be understandable. However when the OP comes back with a new problem which may, or may not exist, and may, or may not have arisen in say 2007/08 then I worry.
If the OP has a genuine problem I would like to help.
If the OP is studying accountancy or similar I would like to help and tailor my responses appropriately.
If the OP is a wind up merchant I want nothing more to do with this but, as things stand, I really can't make my mind up.
Hence the challenge..

olbas_oil

How do you actually 'spend' your carried forward losses?

Say I had £48k of losses, across shares ABC&D @ £12k each.

I make £30600k gains this year, less my allowance, giving a taxable gain of £20k. I then decide to use up £20k of my carried forward losses.

Do I just say £48k-£20k = £28k losses carried forward as in a kind of pool,
or do I declare
48k-(12k from share A) + (8k from share with C & D as carried forward losses? What about the remaining £4k from share B. Is that still eligible to be carried forward?

I suppose I'm asking, does the declaration of a loss create a pool, or do you still need to refer back to the original shares that created the loss?

00ec25

it is a pool
eg: capital losses could arise from selling an ivestment property and these can be allocated against ("used up") profits from selling shares - the losses are a pool available to other forms of capital gain not just the specifci investment that created the loss in the first place
or vice versa, share losses can be offset against other share gains or for that matter property gains

the CGT calculation is for the total net taxable gain in the year, the tax payable is not calculated per invidividual investment