Malcolm Finney considers the tax treatment of capital losses incurred by individuals.
Allowable capital losses are computed in the same manner as chargeable gains. Such losses are deductible against chargeable gains in the same tax year.
The annual capital gains tax exempt amount for a tax year will be lost (i.e. unusable) if the allowable losses for the year are equal to or exceed the chargeable gains.
Carrying losses forward
Surplus unrelieved capital losses are available for indefinite future carry forward. Any losses carried forward must be utilised by way of offset at the first available opportunity.
Nevertheless, the offset of carried forward losses (unlike current year losses) may be restricted so as to preserve the annual exempt amount.
