Capital Gains Tax on Selling Shares

D

docy

Registered User
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If selling shares at a loss how is capital gains (if any) calculated?
 
If you sell at a loss the loss can be offset against a gain
You would seek to make a loss where you have made a gain
 
RedDevil said:
If you sell at a loss the loss can be offset against a gain
You would seek to make a loss where you have made a gain
Click to expand...
This post is a bit confusing to me anyway.

If you make a loss then you can carry that loss forward indefinitely and set it against future capital gains. When you do make a capital gain you MUST offset the previously incurred loss first (e.g. before your annual CGT allowance etc.). I think that you are supposed to make a CGT return even if you make a loss in order to "record" the loss with Revenue but I'm not 100% sure on this and I have previously offset losses that were not recorded in this way in the past without any problems...
 
Thanks Clubman.
How would this be illustrated if say a loss of 1,000 was made in year 1 and a gain of 10,000 in year 2?
Thanks for help!
 
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