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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have Capital Losses available to carry forward. If I enter

Customer Question

I have Capital Losses available to carry forward. If I enter into an Individual Voluntary Arrangement will I lose the losses or can I carry them forward?
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi
Thanks for your question, I am Sam and I am one of the UK tax experts here on Just Answer.
The capital losses are not lost - when an IVA is entered into but if you had a capital gain for that specific year on which you enter into the IVA, you would be expected to use the loss first to reduce the chargeable gain position, then be allocated your annual exemption allowance, to then establish the tax position, and it would be this amount that you could then ask to be included into the IVA.
If you have no capital gain or the year that the IVA is being considered, then the loss can be carried forward
Thanks
Sam