CGT 4 - Capital Losses

Question 1

Current year capital losses are offset against…..

Answer 1

current year capital gains before the annual exempt amount. The full current year loss must be used

Question 2

Capital losses on qualifying trading company shares…

Answer 2

which include EIS and SEIS shares, can be used as either capital losses or set against net income of the current or preceding
year

Question 3

If capital losses exceed gains, the excess loss can ….

Answer 3

only be carried forward for use against future gains – it cannot be used against income.

Question 4

The annual exempt amount is offset _______ brought forward capital losses

Answer 4

before brought forward capital losses.

Question 5

The only time capital losses can be carried back is …

Answer 5

on death. The loss is carried back for up
to three years and is used in the later years first. The annual exempt amount is offset before capital losses carried back.

Question 6

There is a targeted anti-avoidance rule (TAAR) to prevent a taxpayer claiming an allowable loss where ….

Answer 6

he has entered into arrangements the main purpose of which is to secure a tax advantage.