Offsetting investment loss vs income tax/tax on savings interest

sturgeon

I doubt this is possible but I’m just closing my positions on an online trading platform to move the full remaining amount into a fixed savings account. There will be a c. £700 loss vs the amount invested. Should it have gone the other way I’d have paid capital gains tax if hitting a profit threshold. 

A quick search suggests this loss should be reported in a tax return and it can offset other gains. However I don’t have any other investments that would incur capital gains tax. So if reporting a loss, will this be offset my an equal reduction in my income tax? Or would my personal savings allowance (Mine is £500 tax free) increase?

When would I report this loss, only in the end of year tax return in 2024?

Dazed_and_C0nfused

sturgeon said:

I doubt this is possible but I’m just closing my positions on an online trading platform to move the full remaining amount into a fixed savings account. There will be a c. £700 loss vs the amount invested. Should it have gone the other way I’d have paid capital gains tax if hitting a profit threshold. 

A quick search suggests this loss should be reported in a tax return and it can offset other gains. However I don’t have any other investments that would incur capital gains tax. So if reporting a loss, will this be offset my an equal reduction in my income tax? Or would my personal savings allowance (Mine is £500 tax free) increase?

When would I report this loss, only in the end of year tax return in 2024?

I can't see how the loss will be of any benefit if you no gains to set it against.

And interest from ISA's is "tax free", non ISA interest will be taxable in full.

You may well get £500 taxed at 0% courtesy of the savings nil rate band (aka Personal Savings Allowance) but it's still taxable income and forms part of your adjusted net income.  Which is relevant for things like High Income Child Benefit Charge, Married Couple's Allowance and tapered Personal Allowance.

Jeremy535897

It is very rare that you can set capital losses on shares against income. This helpsheet sets out where you can, but I doubt you will meet the conditions:
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/hs286-negligible-value-claims-and-income-tax-losses-on-disposals-of-shares-you-have-subscribed-for-in-qualifying-trading-companies-2023