Reducing CGT with share losses (negligible value claim)

Durace11Bunny

Hi there,

Thanks for taking time to read

I've recently sold a property, on which i must pay capital gains tax. I've read that this can be reduced by offsetting these gains against losses from shares & funds. I have a few questions i'd be grateful if anyone can advise if any of the following is incorrect:

1. I can offset the whole CGT amount with NVC?
2. I've read that this claim can be done without selling the share/fund asset, but assume it can also include those already sold at loss but unclaimed?
   
3. Some shares / funds have been removed from my portfolio due to liquidation - i can still include these provided i show proof of purchase?
4. I intend to use several years worth of losses dating back to 2016?

I've also read that for CGT i really need things like invoices, but in some cases they were lost for older items 15+ years old. I have other forms of proof (bank statement, email from company with amount paid), which i presume ill suffice for tax exemption?

Many thanks for your time and advice

DB

Jeremy535897

Many of your questions are addressed here:
https://www.gov.uk/capital-gains-tax/losses

Note the time limit for claiming losses.

jimmo

1. If you have sufficient losses, yes but if you are bringing forward losses from earlier years you only need to use sufficient losses to reduce your chargeable gains to the annual exempt amount.
2. A negligible value claim can only be made in respect of shares etc that you still own. If shares have been sold the date of sale is the date of any loss.
3. Similarly if a company has been dissolved the date it was dissolved is the date of any loss.
4. HMRC will only require evidence of your purchases if they make Enquiries into your claims. What you have is probably good enough.

 

Negligible value claims can be more flexible than disposals by sale or dissolution because you can have some flexibility regarding the date of the loss.

As a general rule it is preferable to establish the losses for a tax year before the year of the property gain.

This is because gains and losses in the same year are aggregated together to establish an overall gain or loss for the year whereas losses brought forward only need to be used to reduce the overall gain for the year down to the level of the annual exempt amount.

 

https://www.gov.uk/government/publications/negligible-value-claims-and-income-tax-losses-on-disposals-of-shares-you-have-subscribed-for-in-qualifying-trading-companies-hs286-self-assessment-he/hs286-negligible-value-claims-and-income-tax-losses-on-disposals-of-shares-you-have-subscribed-for-in-qualifying-trading-companies-2019