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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

L and M are trustees of property subject to a deed of settlement made in 1970.

The exempt amount for the year 2014-15 is £11,000 and so the trust exemption is £5,500.

The trustees made chargeable gains of £9,000. There are no losses brought forward. 

The taxable amount, see CG18031, is

Gains 9,000
Annual exemption 5,500
Chargeable 3,500

If there were losses of £4,000 brought forward, £3,500 of these losses would be used to reduce the gains to the amount of the exemption. The balance of £500 losses would be carried forward.