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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3918
Experience:  FCCA FCMA CGMA ACIS
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Hello I paid £28k capital gain in the tax year 2011/2012

Customer Question

Hello
I paid £28k capital gain in the tax year 2011/2012 and have suffered a £175k massive loss in 2013/2014 can I claim the £28k back as its within a 2 year period?
Many thanks
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Unfortunately no, capital losses can only be carried forwards against gains in future yars. Here is the Gov UK information on the subject:
'The general rule is that allowable capital losses are deducted from chargeable gains in the same year of assessment. Any balance will be carried forward and deducted from chargeable gains accruing in the earliest year that follows.'
So sorry to have to rain on your parade.
Customer: replied 2 years ago.

That's a shame! but thank you for the prompt reply.

Expert:  bigduckontax replied 2 years ago.

Delighted to have been of assistance.

You have been caught by Benjamin Franklin's dictum that in life there are but two certainties, death and taxes. Here is Baker Tilly's pithy guidance:

'Capital losses cannot be carried back to previous years but can be carried forward indefinitely and brought forward losses can be used in the most beneficial way against gains.'

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