Capital losses

DeeKie

Frequent Poster
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658
This is probably a stupid question. I just got a letter telling me I have 26,000 in capital losses split over 2011 and 2016 - a result of an inability to recover a settlement debt. I don’t have any capital gains to set them off against. Should I be doing anything to try to use these losses. I’m a bit perplexed by the auditors’ letter.
 

torblednam

Frequent Poster
Messages
592
This is probably a stupid question. I just got a letter telling me I have 26,000 in capital losses split over 2011 and 2016 - a result of an inability to recover a settlement debt. I don’t have any capital gains to set them off against. Should I be doing anything to try to use these losses. I’m a bit perplexed by the auditors’ letter.
Back up the bus. Got a letter from whom?
 

DeeKie

Frequent Poster
Messages
658
There was a bad investment made a few years ago. The partnership successfully pursued the brokers for misselling, but the brokers went bust resulting in a capital loss. I have some money exiting the partnership which I was going to use against my mortgage. Now I think I should consider my options as this capital loss could be used against a gain. That’s as far as I got with my thinking.
 

torblednam

Frequent Poster
Messages
592
There was a bad investment made a few years ago. The partnership successfully pursued the brokers for misselling, but the brokers went bust resulting in a capital loss. I have some money exiting the partnership which I was going to use against my mortgage. Now I think I should consider my options as this capital loss could be used against a gain. That’s as far as I got with my thinking.
The loss carries forward indefinitely.

Making a CGT gain will require an investment, and a successful one at that.

Investment involves risk - see for example how the loss that is subject of this thread came about.

Depending on what rate of interest your mortgage is at, you could make a pretty good "return" risk free by paying down the mortgage. You then have an increased cash flow into the future, which you can use to invest and still enjoy the use of those capital losses.
 

cremeegg

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3,359
Is it possible to sell a loss.

I have an investment that would crystallise a capital gain if I sold it, could the OP sell me his loss for me to use to offset this gain.

Is this possible directly or is there any arrangement possible through Malta that might have this effect.
 

DeeKie

Frequent Poster
Messages
658
Her loss. I’m a she. No interest in selling losses through Malta. Thanks for your interest.
 

RedOnion

Frequent Poster
Messages
4,594
Capital losses can only be transferred within a marriage or a company group.

OP, just include the losses on your tax return, and you'll have them available indefinitely if you ever make a taxable gain in the future.
 
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