Delaring a taxable loss within an ISA to hmrc to reduce CGT liability

Lionheart99

I have a general question about my ISA account

As this account is an ISA, this means profits are NOT liable for tax, But If I sell an asset in this account or a loss - for example on 10th April 2022 (ie just within the new 2022-2023 tax year),I sell some shares within this account for a LOSS.

Question 1 )  I understand that If these are the only shares I sell in that tax year (2022-2023), I  can write to HMRC and tell tham that I have sold shares in my ISA for a loss

of lets say -£2000 and use this loss to reduce my CGT liability for the tax year 2022-2023. Therefore the overall ISA P&L is - £2000 for the year.

Question 2 ) Does it matter that the sale for a loss is in an ISA ? (ie are there any rules that prohibit you from delcaring a loss for CGT reasons if its in any ISA ?)

Many thanks to all on this excellent board.

Thanks

Jeremy535897

All gains in ISAs are tax free, but losses in an ISA cannot be claimed against any chargeable gains.

Albermarle

In other words, you can't have your cake and eat it .

Lionheart99

Jeremy535897 said:

All gains in ISAs are tax free, but losses in an ISA cannot be claimed against any chargeable gains.

Thanks Jeremy very helpful, but if it was not in an "ISA" ie a normal investment account would that be a different matter ?

[Deleted User]

Lionheart99 said:

Jeremy535897 said:

All gains in ISAs are tax free, but losses in an ISA cannot be claimed against any chargeable gains.

Thanks Jeremy very helpful, but if it was not in an "ISA" ie a normal investment account would that be a different matter ?

Completely

Jeremy535897

A loss made on shares that are not in an ISA is an allowable loss. Care needs to be taken due to the interaction of annual exemption and capital losses. A capital loss in a tax year has to be set against capital gains in the same tax year before the annual exemption is used. A loss that is brought forward from a previous year is set against capital gains after using the annual exemption.