CGT 4 Capital Losses

Question 1

Current year capital losses are offset against …..

Answer 1

current year capital gains before the annual
exempt amount. The full current year loss must be used.

Question 2

Capital losses on qualifying trading company shares, which include EIS and SEIS shares…..

Answer 2

can be used as either capital losses or set against net income of the current or preceding year.

Question 3

If capital losses exceed gains…..

Answer 3

the excess loss can only be carried forward for use against future gains – it cannot be used against income.

Question 4

The annual exempt amount is offset ________ brought forward capital losses.

Answer 4

before

Question 5

The only time capital losses can be carried back is ….

Answer 5

on death. The loss is carried back for up
to three years and is used in the later years first. The annual exempt amount is offset before capital losses carried back.

Question 6

Capital losses should be…..

Answer 6

offset in order to save CGT at the highest rate possible.

Question 7

There is a targeted anti-avoidance rule (TAAR) to prevent a taxpayer claiming an……

Answer 7

allowable loss where he has entered into arrangements the main purpose of which is to secure a tax advantage.