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HMRC internal manual

Capital Gains Manual

Individuals: Losses: assessment

TCGA92/S1 (1), TCGA92/S2 (2), TCGA92/S3 (1), TCGA92/S4B (2)

An individual is assessable to Capital Gains Tax on his or her total chargeable gains for the year of assessment reduced by

  • allowable losses
  • the annual exempt amount.


Losses accruing are not allowable, and hence may not be deducted from chargeable gains, if they are not claimed in a quantified amount, see CG15813. For more about allowable losses see CG15800.

For the annual exempt amount see CG18000+.

For 2010 - 11 and subsequent years gains accruing to a person in a tax year may be chargeable to capital gains tax at different rates. Thus the tax effect of losses and the annual exempt amount set off against those gains can vary. CG18000 and CG21600+ explain that, subject to any rules which limit the gains from which losses may be deducted, losses and the annual exempt amount may be set against gains in the way that is most beneficial to the individual.