The losses can be carried forward but should be reported in the year when they occurred, just as the gains are reported. As you also have to declare the number of disposals, proceeds and costs (page CG 2 of the self assessment form) their system can check if the total gains & losses fit in with the disposals.

HMRC keep a running total, and in future years any gains first use up the relevant allowance before the earlier losses are used to offset the tax due on gains.

I have kept a spreadsheet of gains/losses so I can work out any potential tax implications in the future, but in my experience HMRC are accurate with this.

That is correct, but as you have to report sales, with profits and costs, you may as well keep it simple and report the losses (if any) in the same year.

M93,

Just saw the following in the HMRC Customer Forum related to your post:


[i]Declaring CGT in self assessment when using losses from previous years
Posted 16 days ago by sinjon
Hi,
I am trying to submit my 23/24 self-assessment, but am confused on CGT. In this tax year, I sold shares which would take me above the £6k gains threshold, however, I have also incurred losses on other shares which I have sold in the past 4 years which if deducted, would bring my net gain back to below £6k. I have not previously reported these losses in any previous self-assessment return.
Given the above, I am confident I don't need to pay any CGT, but:
- Do I need to declare the gains in my self assessment anyway, despite no CGT owed?
- Do I need to declare the losses I'm using from previous years in order for me to be able to use them?
Many thanks

Posted a day ago by HMRC Admin 8 Response

Hi,

You need to declare the gain. if you have not reported the losses then you cannot use them as HMRC are not aware.

You need to report losses within 4 years of the tax year in which they arise.

You should therefore file the return without the losses and send a separate claim with evidence of the losses and we can then amend the return where applicable.

Thankyou.





This does confirm that you are better off reporting the losses in the tax year when they occurred, as this avoids extra work later on!

Can someone please clarify the situation regarding the CGT and the 30 day rule in the following circumstance

If I holds something like

3PLT - Leverage shares 3x Plalntir and sells today but I buy Granite Shares 3x Palantir tomorrow or later in the afternoon, will I be in breach of the 30 day rule.

Similar to say selling VWRL and buying another world index by Xtrackers or selling UBS S&P 500 and buying Fidelity S&P 500 index

Will they be treated as separate holdings even though the underlying asset is the same.

Thanks

Thank you

By the distant future - you mean a century ago (last century) :-)

With the minuscule CGT allowance a modest amount in a GIA is likely to fall into the realms of CGT and it is my intention to adopt the above and recycle gains regularly.

My gut feel is that such an approach is another push to make people traders as opposed to investors where people will take both gains and losses to offset any CGT. This will simply push towards more reporting. That is just my cynical view.