Capital losses and illustration
In this lesson, you'll learn how capital losses work in capital gains tax and how to apply them strategically to minimise your tax bill.
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In this lesson
- 0:00 Capital losses: netting and offset rules
- 0:16 Netting gains and losses in same tax year
- 0:31 Carrying forward losses to future years
- 0:57 Worked example: Una's multiple disposals
- 2:35 Worked example: Hetty's gains and brought forward losses
About this lesson
You'll discover the key rule: losses must be netted against gains in the same tax year before the annual exempt amount is applied, and you can choose the order to your advantage—for example, offsetting losses against residential property gains first since these are taxed earlier. Through two worked examples, you'll see how to calculate your CGT liability when you have multiple disposals, and how to preserve unused losses by claiming the annual exempt amount before offsetting brought-forward losses. This is essential knowledge for the TX paper, where capital gains calculations are a core skill you'll need to apply confidently under exam conditions.
Duration: 4m
Transcript
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