CH4 - Capital Losses Flashcards
CGT SM 4 Example 1, CGT QB Q4.3.
1
Q
Current year capital losses are ?
A
offset against current year capital gains before the annual exempt amount.
The full current year loss must be used.
1
Q
Capital losses on qualifying trading company shares can be used as either ?
A
capital losses, or set against net income of the current or preceding year.
This includes EIS and SEIS shares.
2
Q
If capital losses exceed gains, ?
A
the excess loss can be carried forward for use against future gains - it cannot be used against income.
3
Q
The annual exempt amount is offset before ?
A
brough forward capital losses.
4
Q
Capital losses should be offset in order to ?
A
save CGT at the highest rate possible.
