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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Annual exempt amount: example


The exempt amount for 1998-99 is £6,800.

C has gains of £8,000 and losses of £3,500 brought forward from earlier years.

The taxable amount, see CG18031, is:

Gains 8,000
Losses 1,200
Taxable amount which is covered by the exemption 6,800

Losses brought forward are deducted only to the extent necessary to reduce the netgains BEFORE TAPER RELIEF to the amount of the main exemption.

The losses carried forward are:

Losses brought forward 3,500
Used in the year 1,200
Losses carried forward 2,300

Computations for earlier years follow the same principles.