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.
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.