Losses in shares and tax relief

TornSoldier

Hi there,
Over the years I have bought shares of my employer through the company scheme that are in significant losses for past three years. I do not do any tax self assessment as tax is deducted at my salary and was told not needed to for the same reason.

A friend from the US today told me about selling the shares at loss and show that in my tax assessment for some relief. Does this exist in the UK and how do I go about it? I am not very good when comes to money management tbh!

Thank you for your time in advance

cheers
TS 

[Deleted User]

Losses in shares can only be set against capital gains in the same tax year or carried forward against future gains. They cannot be relieved against any other income.

TornSoldier

[Deleted User] said:

Losses in shares can only be set against capital gains in the same tax year or carried forward against future gains. They cannot be relieved against any other income.

Thanks! Are you saying if I have bought more shares today, then I can set the loss against them. Do they have to be same shares or can be different? I am wondering if I should sell them at loss and put the capital on something else ?

Dead_keen

purdyoaten2 said:

Losses in shares can only be set against capital gains in the same tax year or carried forward against future gains. They cannot be relieved against any other income.

That's not quite right.  There are some narrow circumstances where that is possible: 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/negligible-value-claims-and-income-tax-losses-on-disposals-of-shares-you-have-subscribed-for-in-qualifying-trading-companies-hs286-self-assessment-he--2#claim-to-set-loss-against-income

[Deleted User]

Dead_keen said:

purdyoaten2 said:

Losses in shares can only be set against capital gains in the same tax year or carried forward against future gains. They cannot be relieved against any other income.

That's not quite right.  There are some narrow circumstances where that is possible: 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/negligible-value-claims-and-income-tax-losses-on-disposals-of-shares-you-have-subscribed-for-in-qualifying-trading-companies-hs286-self-assessment-he--2#claim-to-set-loss-against-income

Yes - missed the ‘shares through my employer’ - went on the thread heading alone.

unholyangel

Op what the purpose of the disposal? What are you trying to achieve? 

Is it that you need money? Or is it that you expect the shares to significantly worsen in the coming years/not recover before you would have otherwise disposed of them? 

Just the way your post reads, your friend has advised you to sell for no other reason other than to create a loss for tax purposes. If that is the case, please stop taking financial advice from that friend. 

TornSoldier

unholyangel said:

Op what the purpose of the disposal? What are you trying to achieve? 

Is it that you need money? Or is it that you expect the shares to significantly worsen in the coming years/not recover before you would have otherwise disposed of them? 

Just the way your post reads, your friend has advised you to sell for no other reason other than to create a loss for tax purposes. If that is the case, please stop taking financial advice from that friend. 

His point was to sell and buy at currently horrible price to potentially make the loss back than waiting for unknown years the shares will take to rise up. And in my industry, it’s very uncertain atm