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Where Taxpayers and Advisers Meet

Capital loss from foreign investment.

perseus
Posts: 20
Joined: Sun Mar 01, 2009 9:04 pm

Capital loss from foreign investment.

Postby perseus » Thu Jan 08, 2015 7:41 pm

I have a small capital loss from foreign investments due to £/€ currency fluctuations, not nearly enough to make any difference to the 13/14 tax years bill. However, do I have to mention this on that years form if I ever wish to use those losses to offset potential future capital gains in future years?

King_Maker
Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Re: Capital loss from foreign investment.

Postby King_Maker » Thu Jan 08, 2015 8:11 pm

You have to claim a CGT Loss with HMRC in order for it to be an Allowable Loss.

perseus
Posts: 20
Joined: Sun Mar 01, 2009 9:04 pm

Re: Capital loss from foreign investment.

Postby perseus » Fri Jan 09, 2015 1:28 pm

Yes I know, but does it need to be declared within the tax year it occurs, or only at the time you are offsetting the loss, assuming you have the paperwork.

I have no gains to offset for the tax year in question and it would be very complicated to work it anyway at this time.

I know losses can be offset for up to 4 years, but it is less clear if they have to be pre-declared.

King_Maker
Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Re: Capital loss from foreign investment.

Postby King_Maker » Fri Jan 09, 2015 5:26 pm

I don't understand your use of the word "declare".

Any CGT losses for 2013-14 must be claimed (by advising HMRC of the relevant figure) UP TO 4 years after 5 April 2014.

tannaroo
Posts: 12
Joined: Tue Mar 03, 2015 9:48 am

Re: Capital loss from foreign investment.

Postby tannaroo » Mon Oct 05, 2015 1:25 pm

Can I clarify this 4 year rule / election.

Am I right in saying you have to notify HMRC within 4 years of a incurring capital loss through the tax return, but once you have the notified that capital loss it be can be offset indefinitely against a capital gain?

King_Maker
Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Re: Capital loss from foreign investment.

Postby King_Maker » Mon Oct 05, 2015 2:13 pm

Can I clarify this 4 year rule / election.

Am I right in saying you have to notify HMRC within 4 years of a incurring capital loss through the tax return, but once you have the notified that capital loss it be can be offset indefinitely against a capital gain?
The 4 year Time Limit refers to the end of the Tax Year in which the Loss occurred - except for Losses prior to 6 April 1996.

The Loss should be declared in the SATR, if issued. Otherwise by writing to HMRC.

An Allowable Loss can be carried forward indefinitely.

Number26
Posts: 1
Joined: Tue Jan 24, 2017 4:59 pm

Re: Capital loss from foreign investment.

Postby Number26 » Tue Jan 24, 2017 5:19 pm

Hi, I'm new to this forum so apologise if I'm looking for an answer that has already been posted.
I have an investment through a UK broker in some USA shares, bought around 2002. The US company has failed so the shares are worthless - can I offset the loss against tax due from property rental income in the UK - if so can I declare the shares as being of 'Negligible Value' on my tax return or do I need to claim the loss in some other way.
My reading of the rules on 'Neglible Value' losses would require the shares to have been in a UK based company (?) - I am UK domiciled.


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