Carrying Forward Capital Losses.

Judesman

I have significant capital losses from the sale of shares many years ago registered with HMRC. I am about to sell shares that will realise significant gains that I want to set off against these registered losses. I would like to know if there are any time limitations or limits on the amounts I can set off against a capital gain made in any one tax year. If I phone HMRC the person answering will tell me that they are not an expert on Capital Gains Tax and they will get someone to phone me, and they never do. So, can anyone here help please?

[Deleted User]

the losses can be carry forward indefinitely BUT ..........

have you informed HMRC of said losses?

https://www.gov.uk/capital-gains-tax/losses

Judesman

Yes, the losses have been registered with HMRC. I will read your link. Many thanks.

00ec25

if the losses are already formally registered with HMRC (*) then there is no time limit impacting their utilisation, they remain available indefinitely.

Purdyoaten's link works in the negative, ie no where does it say there is a time limit because there isn't one. It does deal with rules over registering and offsetting. (Both of which are, as ever with the .Gov website, covered so superficially as to be of limited value)

the CGT manual is the place for the technical detail: "any balance must be carried forward without time limit"
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg15810

The rules are over the order in which you must offset them against a gain when you finally need to.

* for the record there are time limits for claiming the loss, but you say you have already registered them so this is just for other people's interest:
http://www.edwinsmith.co.uk/news/time-limits-for-claiming-capital-gains-losses

Judesman

Many thanks, I will do some reading.

[Deleted User]

00ec25 wrote: »

if the losses are already formally registered with HMRC (*) then there is no time limit impacting their utilisation, they remain available indefinitely.

Purdyoaten's link works in the negative, ie no where does it say there is a time limit because there isn't one. It does deal with rules over registering and offsetting. (Both of which are, as ever with the .Gov website, covered so superficially as to be of limited value)

the CGT manual is the place for the technical detail: "any balance must be carried forward without time limit"
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg15810

The rules are over the order in which you must offset them against a gain when you finally need to.

* for the record there are time limits for claiming the loss, but you say you have already registered them so this is just for other people's interest:
http://www.edwinsmith.co.uk/news/time-limits-for-claiming-capital-gains-losses

Yes - I see what you mean. My link was only supposed to highlight the reporting time limit of four years which is in the middle somewhere!!!

laticsforlife

When you say 'registered', how do you mean you did that, in tax returns year on year (carried forward loss on the CG pages) or aren't you on the self-assessment train.

If you sent a letter, don't expect it still to exist, nowhere to keep it these-days, staff don't even get a desk each!

Judesman

Several years ago I accumulated some pretty nasty losses thanks to Lloyds and RBS. I did an annual self assessment return with capital gains return attached. Last month I phoned HMRC and they confirmed my registered loss.