Another question PTAX (FA2013) 2013 standards Capital gains

Rosierabbit Registered Posts: 17 Regular contributor ⭐
Sorry i have another query regarding task 3 on the same sample assessment about capital gains / losses

We have :

Charlenes only income is from letting property. profit and losses are as follows.

2011/12 - 8700
2012/13 - (2200)
2013/14 - 1300

Now i know losses can not be carried backwards so understand

2011/12 - Loss relived to be 0

However the answers state -- in 2012/13 which is fine, but how do we get to the (1300) for 2013/14

Thank you very much

Rose x


  • Lucy_M
    Lucy_M Registered Posts: 136 Beyond epic contributor 🧙‍♂️
    I think it is because there is no gain in 12/13 so the loss is carried forward but because the gain in 13/14 is only 1300 then only that amount can be relieved so the balance of the loss (900) will be carried forward again. Does that make sense? x
  • Rosierabbit
    Rosierabbit Registered Posts: 17 Regular contributor ⭐
    Thats waht i thought that it would be (900). however the answer is (1300) ? x
  • CeeJaySix
    CeeJaySix Registered Posts: 645

    Lucy is absolutely correct.

    Don't confuse losses relieved with losses carried forward. The loss relieved in the year is (up to) the full net gain - ie. £1300 here, meaning that overall the assessable gain for the year will be zero.

    The carried forward difference of £900 is not yet relieved, which is why it can be carried forward to be set against gains in future years.

    Does that make sense?
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