Capital Gains Tax - Dealing with losses

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:10AM in AAT student discussion
HI<BR><BR>If you have a loss brought forward from a previous year and you make a loss in the current tax year how do you deal with this for CGT? <BR><BR>(Very simply put - all the examples I've seen show you how to deal with a loss brought forward which you take off current year or for a loss in the current year which you can carry forward.)

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Capital Gains Tax - Dealing with losses

    this new loss is aggregated with the loss b/f and the total c/f. The only problem that may arise is if the loss is caused by transactions with a connected person.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Capital Gains Tax - Dealing with losses

    Yep, both losses totalled and c/f :-)..... don't understand the last bit of what bryan said. Bryan can you elaberate for me :-)<BR><BR>Regards<BR><BR>Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Capital Gains Tax - Dealing with losses

    Generally, if you sell an asset to a connected person (lineal relative, brother, sister) and create a capital loss then this is only relievable against gains arising on transactions with the same person.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Capital Gains Tax - Dealing with losses

    Thank you! :-)<BR><BR>Regards<BR><BR>Dean

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