Can a capital gain loss be used to offset income tax?

[foxmccloud]

Sorry if this is a dumb question.

If someone bought a commodity and made a big loss can that be used to reduce their income tax?

If the above can't be done, can be be used to offset any capital gains in the following years?

[greybags1]

What's been bought and sold?

[foxmccloud]

What's been bought and sold?

I am a tax noob who knows very little. I am thinking about buying shares but fear a downturn in price.

[TaxAdviser2018]

Unless you can demonstrate that the activity that you are carrying on is a trade or business, any taxable profit or allowable loss would be subject to capital gains tax. In respect of losses, these would be carried forward and offset against future capital gains.

[foxmccloud]

Unless you can demonstrate that the activity that you are carrying on is a trade or business, any taxable profit or allowable loss would be subject to capital gains tax. In respect of losses, these would be carried forward and offset against future capital gains.

Thank you!! I am slowly learning. BTW can you reccomend a book or resource that will give me an overview on this subject?

[greybags1]

Have a look at https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim56800