Tax relief for capital loss
Contents
Tax relief for capital loss
If you suffer a loss on the sale of an asset (a capital loss), you can set this loss off against any profits made on the sale of other assets (capital profits) in the same tax year. You may also be able to set this loss off against capital profits made in future years.
If you carry the loss forward to the next tax year, you can set it against capital profits to bring them down to the level of your Annual Exempt Amount (see Capital Gains Tax for more information).
Claiming the loss
You must tell HM Revenue & Customs (HMRC) about the loss by claiming it on your Self Assessment tax return (including your calculations) within specified time limits. If you don't normally file a Self Assessment tax return, you can tell HMRC of the loss and your calculation by letter.
You have 4 years from the end of the tax year in which the loss was made to claim relief.
What is the law guide
The Desktop Lawyer law guide aims to present the law to you in a comprehensive yet jargon-free and easy-to-read format. Our law guide is constantly kept up to date with changes in business and family law by our team of in house solicitors, and includes information across all the legal jurisdictions in the UK.
Our law guide is free to use. Where we provide documents related to this area of law, or where they may help you with any legal issue in this area, they will be listed to the right of this message.