Capitol loss for CGT purposes

Lionheart99

I wonder if someone could assist me.

in the next year I intent to sell some shares at a loss, heres the scenario.

A, in may 2021 I bought some shares in company A for lets say 5000 shares at £1 a share.

B in May 2022 I sell these shares 5000 at 50p a share = a loss of £2500.00 (the shares are held

in a regular investment account not an isa.)

C In june 2022 I sell other assets at net gain (profit) of 15000.

i have no other income, and my cgt allowance in £12300 (lets say)

therefore cgt due is on 15000 - 12300 = £2700

But I understand I can use the £2500 loss  (B above) to reduce this liability to 2700 - 2500 = 200

meaning my amount liable for cgt is £200-00 -

Have I got this right ?

Many thanks

eskbanker

Effectively yes, you work out your net chargeable gains (i.e. deducting chargeable losses) over the whole tax year, so £12,500 in this example (if no other transactions before April 2023), and then the annual CGT allowance of £12,300 is offset against this, giving a net liability of £200.

In the real world you'd typically have other factors to take into account, such as staging sales across multiple tax years and/or getting assets into tax shelters, but the above maths are basically correct....

lozzy1965

And just in case it isn't obvious, don't forget to include costs too.  The cost of your asset is what it actually cost you to buy including costs.  The proceeds from your asset are (or is it "is"!) the amount of money you actually end up with after costs. 

Lionheart99

esk - lozzy - many thanks indeed very useful.