CGT Losses

CGT Losses

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I hardly ever have anything to do with Capital Gains Tax as you will see and I want to know if I am missing something.

I have a client who has sold two lots of investments during 2011/12.  The investment Bond has made a profit of £2,241 with tax treated as paid of £449 and the Equity Fund shares has made a loss of £1,646 in the same year. My simple mind says that I net the loss off against the profits which leaves me with zero liability to CGT as the result is well below the exemption limit for the year.

However the profit of £2,241 is also below the CGT exemption limit and I want to know whether there is any way that this can be separated from the loss to allow the loss of £1,646 to be carried forward to 2012/13. It would be useful as my client already has profits for 2012/13 that exceed the CGT threshold.

I know I am being thick and i guess I am also suffering from wishful thinking but it was worth an ask!

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By vince8
27th Jul 2012 08:49

Is the bond CGT?

You refer to tax paid on the bond. This sounds like it is a chargeable event so not subject to CGT.

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By blok
27th Jul 2012 09:39

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the bond income will be subject to income tax, there will be top slicing consideration.

But to anser your question, no.  you would need to net the gains and losses in the year so you would be unable to carry forward the bigger loss.

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