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
|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.