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HMRC internal manual

Capital Gains Manual

Individuals: losses: Relief for losses: losses in year of death

Mrs E dies in 2015-16. Her disposals in that year before her death have produced gains of £8,500 and losses of £20,000.

Amounts chargeable to Capital Gains Tax on Mrs E before the deduction of losses from the year of death are as follows-

2012-13 £6,800
   
2013-14 £3,500
2014-15 £7,400

 

These figures are after deduction of the annual exempt amount (see Stage 4 of the example in CG21530).

Example

1) Deduct total losses of the year from total gains:

2015-16  
   
  £
Total gains £8,500
Total losses (£20,000)
   
Losses available to carry back (£11,500)

 

There are no gains chargeable to Capital Gains Tax for 2015-16.

2) Set the balance of losses against gains of the three preceding years, taking later years before earlier years:

2014-15    
     
  £ £
Net chargeable gains   7,400
Losses brought back (11,500)  
Allowed 2014-15 (7,400) (7,400)
     
Losses carried back (4,100)  
Amount chargeable 2014-15    

 

2013-14    
     
Net chargeable gains   3,500
Losses brought back (4,100)  
Allowed 2013-14 (3,500) (3,500)
     
Losses carried back (600)  
Amount chargeable 2013-14    

 

2012-13    
     
Net chargeable gains   6,800
Losses brought back (600)  
Allowed 2012-13 (600) (600)
     
Amount chargeable 2012-13   6,200