The Lemon Fool

I made a capital loss of 10k on a property sale in the 2016-17 tax year. I made a capital gain of 50k on a property sale in the current tax year, and am currently preparing a CGT return via the UK Property Reporting Service. Can I deduct the 10k in calculating my taxable gain (in addition to the 12300 allowance) to reduce the taxable amount?

I’ve had no other capital disposals in the intervening period. I reported the loss on the CGT pages of my 2016-17 SA return, and on every SA form for every year since I’ve included in the white space a statement of the form: ‘Capital loss of £10000 claimed on 2016-17 return. No capital disposals 2017-18 or 2018-19 or 2019-20 or 2020-21 or 2021-22. Loss carried forward to future years £10000.’

My reading of HMRC and other websites leads me to believe that because the loss was reported within the required time, it can be carried forward and I can now make use of it. Am I right?

It says here that losses can be reported up to four years after the end of the tax year in which you disposed of the asset.
Which you did.

Afaik there are presently no time limits on using the losses, but I made sure this year to use up all my old losses in case the new govt changes that rule.

V8

88V8 wrote: but I made sure this year to use up all my old losses in case the new govt changes that rule.

Very good advice

88V8 wrote:It says here that losses can be reported up to four years after the end of the tax year in which you disposed of the asset.
Which you did.

Afaik there are presently no time limits on using the losses, but I made sure this year to use up all my old losses in case the new govt changes that rule.

V8

Agreed, there is no time limit on the carry forward of capital losses.

88V8 wrote: I made sure this year to use up all my old losses in case the new govt changes that rule.

But of course on the other hand, if CGT rates increase then it could make more sense to retain losses.

I cannot imagine not being able to offset losses against gains.

Lootman wrote:

88V8 wrote: I made sure this year to use up all my old losses in case the new govt changes that rule.

But of course on the other hand, if CGT rates increase then it could make more sense to retain losses.
I cannot imagine not being able to offset losses against gains.

I agree, but I can imagine a time limit so that some losses are ... lost.. which would generate more tax.
Some of my losses were 5 years old.

I fear that after five years of a Labour govt the tax situation for retail investors may have taken several turns for the worse.

V8

"I fear that after five years of a Labour govt the tax situation for retail investors may have taken several turns for the worse."

It already has, V8 - see the sharp reductions coming in your CGT allowance. Apart from the extra tax that will mean lots more people will have to submit tax returns. Expect more delays from HMRC as they process even more returns.

Also losses aren't indexed so if you have made and claimed them a long time before you use them, you are not really getting full compensation.

Losses, once declared, may be carried forward indefinitely. I would imagine that if any Government changed this rule they would allow the losses to be used in the (tax) year of the change and the following 6 years (as that is the established rule).

Eb.