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HMRC internal manual

Capital Gains Manual

Introduction and computation: annual exempt amount: exploitation of annual exempt amount: Annual exempt amount: example

The exempt amount for the year 2014-15 is £11,000.

B has gains of £13,000 and losses of £3,500 for the same year.

The computation is

Gains 13,000
   
Losses 3,500
Taxable amount which is covered by the exemption 9,500

which is covered by the exemption

The whole of the losses for the year must be deducted from the gains, even though this reduces the net gains below the amount of the annual exemption.