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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4808
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Sam I have a question regarding rolling over CGT losses.

Customer Question

Hi Sam
I have a question regarding rolling over CGT losses. I have heard that from this year, any CGT losses claimed can only be rolled over for 4 years maximum and then will be lost. Is this correct?
If it is correct, what about losses claimed from previous years? Is it correct that they can continue to be used in the future without any time limit?
Thank you.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello Mary, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. This is covered in HMRC advice CG15810. Tax losses must be used as follows: 'Allowable losses must be deductedas far as possible from chargeable gains accruing in the same year of assessment,andany balance must be carried forward without time limit and deducted from chargeable gains accruing in the earliest later year. Losses brought forward are deducted after losses accruing in the year of assessment and cannot reduce the net chargeable gains to below the annual exempt amount. Any losses which thus cannot be deducted remain available for deduction in later years.' When using losses be careful not to waste your Annual Exempt Amount (AEA) of 11.1K; only use enough to bring your gains down to the AEA. I do hope my reply has cleared the air for you,