Ndubuisi 'Andy' Egwim explains how capital losses can cut your UK capital gains tax, but only if you report them to HMRC within four years. The annual CGT exemption dropped from £12,300 to £3,000, making unreported losses far more costly now.
Within four years of the tax year the loss occurred.
It has fallen from £12,300 to £3,000.
Now number two is capital losses. Most people never claim this one. They don't even know about it. It's one of the most painful ones capital losses. If you've ever sold shares at a loss, closed a bad investment, made any investing mistakes, you may be entitled to claim back some of that reduced future capital gains tax. That's how you claim it back. Capital losses can be carried forward indefinitely but and this is crucial, they must be reported to HMRC within four years of the tax year the loss occurred. If you miss that deadline that relief is gone forever. This matters more than ever because capital gains CGT annual exemption has fallen from £12,300 to 3k now. So I've seen medics pay capital gains tax years later on gains that could have been legally reduced or even completely wiped out simply because nobody told them to report the earlier losses. I used it to offset the swans. HMS will remind you they will happily take the full tax.
