Individuals: losses: Relief for losses: losses in year of death
Capital losses that cannot be used in the year of assessment in which they arise may normally only be carried forward. But there is an exception. If an individual incurs capital losses in the year in which he or she dies, those losses must first be set against gains of the same year. But any surplus can be set against gains of the three preceding years. You must allow them against the gains of a later year before gains of an earlier year. This is explained more fully at CG30430+.
Other exceptions are described at CG15811.