Carry forward stock losses for CGT on 2022-23 Self Assessment 15 March at 12:16AM edited 15 March at 12:24AM in Cutting tax 4 replies 87 views

haveabreak

Hi all

Assume I have disposed of UK shares and made gains/losses as follows in the 2022-23 tax year (thus far) :

Share A = £1000
Share B = £2000
Share C = £3000
Share D = -£750

The CGT annual exempt amount is £12,300. I believe I can report a gain of £6,000 for 2022-23 and carry forward the -£750 loss to a future tax year, is that correct?

Or do I need to report a total gain of £5,250?

Edit 1:
https://www.gov.uk/capital-gains-tax/losses

HMRC seems to state you do not need 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.

Jeremy535897

You calculate the net capital gains position for the year. In your case it is £5,250 so your loss is wasted. Had the loss arisen in the previous tax year, you would not have needed to offset it against the gains of £6,000.

purdyoaten2

haveabreak said:

Hi all

Assume I have disposed of UK shares and made gains/losses as follows in the 2022-23 tax year (thus far) :

Share A = £1000
Share B = £2000
Share C = £3000
Share D = -£750

The CGT annual exempt amount is £12,300. I believe I can report a gain of £6,000 for 2022-23 and carry forward the -£750 loss to a future tax year, is that correct?

Or do I need to report a total gain of £5,250?

Edit 1:
https://www.gov.uk/capital-gains-tax/losses

HMRC seems to state you do not need 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.

From your link - first sentence after the heading:

‘Using losses to reduce your gain’

haveabreak

Jeremy535897 said:

You calculate the net capital gains position for the year. In your case it is £5,250 so your loss is wasted. Had the loss arisen in the previous tax year, you would not have needed to offset it against the gains of £6,000.

Thanks. But it seems according to the HMRC website I do no need to report the loss and have 4 years to do so if I wish?

Jeremy535897

haveabreak said:

Jeremy535897 said:

You calculate the net capital gains position for the year. In your case it is £5,250 so your loss is wasted. Had the loss arisen in the previous tax year, you would not have needed to offset it against the gains of £6,000.

Thanks. But it seems according to the HMRC website I do no need to report the loss and have 4 years to do so if I wish?

That is where you have no gains, just a loss.