Chapter 11 - Relief for Capital Losses

Question 1

Offset of Capital Losses

Answer 1

Taxpayer will set capital losses against capital gains. Losses reduce gains. They must be, and are automatically, set against gains in the same year. They can be deducted in the most beneficial way.

Question 2

Losses

Answer 2

Should be placed against any 20% taxed gains first

Question 3

Excess Loss

Answer 3

Excess losses are carried forward and set against gains in future years

Question 4

Carried Forward Losses

Answer 4

When a capital loss is carried forward, it is used to bring gains down to the level of AE (£11,700)