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Capital losses

Produced by Tolley in association with
Trusts and Inheritance Tax
Guidance

Capital losses

Produced by Tolley in association with
Trusts and Inheritance Tax
Guidance
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Calculations and claims

Losses arising to trustees are calculated in the same way as they are for individuals. Capital losses are automatically set against any gains of the same tax year; any that are unused can be carried forward and set against gains arising in subsequent years. They cannot be carried back and set against gains of a previous year.

Losses brought forward are only set against gains of subsequent years to the extent required to reduce the gains of that year to the amount of the applicable annual exemption. In this way none of the annual exemption is wasted.

Losses must be claimed in order to be allowable, normally on the Capital Gains supplementary pages of the Trust and Estate Tax Return. The general time limit for claims and reliefs is four years from the end of the year of assessment to which they relate. It is advisable to include details of capital losses on the annual tax return as a matter of routine, even though there is no requirement to do

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Paul Davies
Paul Davies

Partner at DWF LLP


I am a partner in the private client department of DWF LLP, based in Manchester. I specialize in providing advice on tax and succession planning to high net worth individuals, executors and trustees. I will assist clients in the creation of wills and lasting powers of attorney and in the creation, restructuring, and dissolution of trusts and other wealth holding vehicles whether onshore or offshore. I often act as a professional executor and trustee..   He has chaired the ICAEW's Employment Taxes & NIC Committee for many years and is a past chairman of the Institute's Tax Faculty. He is also a member of two relevant technical sub-committees of the CIOT.

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