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Bringing forward a capital loss

Practical Issues
MyNameIsUrl
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Bringing forward a capital loss

#137189

Postby MyNameIsUrl » May 5th, 2018, 9:12 pm

How is a capital loss brought forward shown on the self-assessment form if there are no disposals in the year? I’d appreciate any views on what I’ve done on the cgt pages before submission, as a couple of the entries needed to be put in to avoid error messages.

Suppose there was a residential property disposal in 2016-17 resulting in a capital loss being carried forward. In 2017-18 there were no capital disposals. The loss is required to be carried forward again to a future year when it will be used to offset a gain.

After reading the form and the notes the only entries I’ve made for 2017-18 are:

* Answer ‘Yes’ to ‘Do you want to claim an allowable capital loss’

* Tick ‘Residential property’ (something has to be ticked or there is an error message)

* Enter the £ amount in box ‘Losses available to be carried forward’

* There are no disposals therefore no computations, but the ‘Any other information’ text box requires an entry, so I’m simply entering ‘Loss carried forward from 2016-17 £X’


The only data shown on the pdf of the competed form is the £ amount in Box 47 ‘Losses available to be carried forward’ and the text entry in the ‘Any other information’ text box.

Does this look correct?

genou
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Re: Bringing forward a capital loss

#137197

Postby genou » May 5th, 2018, 10:21 pm

MyNameIsUrl wrote:Suppose there was a residential property disposal in 2016-17 resulting in a capital loss being carried forward. In 2017-18 there were no capital disposals. The loss is required to be carried forward again to a future year when it will be used to offset a gain.


Presumably from what you say, you claimed the loss in your 16/17 return. In that case you don't need to complete 17/18 CGT pages, as the loss is already claimed and remains to be reasserted when you need to complete the pages when a later gain occurs.

PinkDalek
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Re: Bringing forward a capital loss

#137200

Postby PinkDalek » May 5th, 2018, 11:35 pm

In that situation, I'd agree with Genou but I'd probably include a white space note on the main return, showing capital losses brought forward from 2016-2017 of £X and carried forward also of £X.

helfordpirate
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Re: Bringing forward a capital loss

#138393

Postby helfordpirate » May 11th, 2018, 4:42 pm

FWIW the commercial tax software TaxCalc does exactly what PinkDalek suggests - does not submit the CGT pages but adds a note to the main tax return stating the carried forward losses. It also says in its "summary" that it is not required by HMRC - just belt & braces.


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