CARRY OVER LOSSES

[tom]

I have made approx £6100 profit in the 02/03
tax year from buying/selling shares.
But i have also made a loss of £3700 on some
of the other shares that i sold.
Do i have to offset my losses against the gains,
or can i keep all of the £6100 profit as it is
under the capital gains threshold, and carry
the £3700 losses over to next years trading
to be used against 03/04 gains ( if any !) .
Thanking you kindly
Tom

[Nigel Lord]

Tom

Losses arising in the same tax year as gains are netted off against each other and then your annual is deducted from any balance. Very unfair.

If there is a any loss it may be carried forward against future gains, however, annual exemptions in future years may be deducted against gains BEFORE losses brought forward.

I have no explanation for this apparent anomaly.

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk