Personal Capital Gains Tax

Generally speaking, Yes. The loss may need to be agreed with the IR before the loss becomes an allowable loss.

You should make a claim on in your annual tax return for losses in order that they can be carried forward. If you do not do this it will be difficult in subsequent years to use them. The annual tax return makes it clear this is what you should be doing so its difficult to make an excuse. You can print a form off the internet.

In addition, any gains in the year that the loss is realised act to reduce the loss i.e. the capital gains allowance gets used last. The form takes you through this.

It is not quite as harsh as that.

There is no requirement to notify losses to the IR which arose prior to Self Assessment (6 April 1996). Obviously, you need to retain the relevant details if need to utilise such CGT losses.

From losses arising from 6 April 1996, you have about 5 years 10 months (i.e. 31 January) to notify the IR.

Notification can take the form of a separate memorandum/letter, not just using the SA Return.

In message of Thu, 17 Jul 2003, Doug Ramage writes

from the end of the tax year in which the loss arose.

DF