Bed and ISA - loss in trading account carried forward to use against future gain?

fullmoon_2

Hello everyone,

As part of Bed and ISA strategy, I am going to sell shares worth of £15,000 in trading account and then buy back in ISA account. But it will create a loss of around £15,000 in the trading account. Yes, the shares lost around 50% of its value.

My question is, if I have no capital gain during current financial year, will it be possible to offset the loss of £15,000 from future capital gain in trading account?

Thanks in advance.

eskbanker

Yes, you can carry losses forward: https://www.gov.uk/capital-gains-tax/losses

fullmoon_2

eskbanker said:

Yes, you can carry losses forward: https://www.gov.uk/capital-gains-tax/losses

Thanks a lot eskbanker.

spock007

Hello - is this advice still applicable in 2025? 

I made a loss of ~£80,000 on some shares in investment account and repurchased the lot (for less than £20,000) so under bed & isa / share matching rules.... can I write to HMRC and record this as a loss or not? 

Thanks

ColdIron

You have 4 years to report a loss

Reporting losses

Claim for your loss by including it on your tax return. If you’ve never made a gain and are not registered for Self Assessment, you can write to HMRC instead.

You do not have to report losses straight away - you can claim up to 4 years after the end of the tax year that you disposed of the asset.

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

spock007

Thanks - and this is true even if you sold in an investment account and bought back within a shares ISA within 24 hours? 

Hoenir

spock007 said:

Thanks - and this is true even if you sold in an investment account and bought back within a shares ISA within 24 hours? 

ISA's fall outside of the scope of capital gains tax and income tax. 

From a GIA perspective. Any sales activity exceeding a gross value of £50k in a tax year has to be declared to the HMRC. Irrespective of whether there's a gain or loss. 

masonic

spock007 said:

Thanks - and this is true even if you sold in an investment account and bought back within a shares ISA within 24 hours? 

It doesn't matter what happens in an ISA. You just made a disposal as far as HMRC is concerned, and if that was at a loss, then you can offset that against future gains made outside of your ISA.

spock007

Thanks, everybody - looks like I will be filling out a return!

masonic

spock007 said:

Thanks, everybody - looks like I will be filling out a return!

I don't think you would need to fill out a return if you sold the shares for ~£20k. Unless you made another £30k of disposals elsewhere.

https://www.gov.uk/capital-gains-tax/work-out-need-to-pay

InvesterJones

And important to note the 'both' in 'both of the following apply' above - ie it's only for SA registered people.