Realise those capital losses

If you are planning to sell any property or your business in the near future, be aware that the annual exemption for capital gains tax will be cut from £12,300 to £6,000 on 6 April 2023. That exemption will reduce again on 6 April 2024 to £3,000, so long-term planning is needed where gains are expected to be made. Where you have made capital losses in the past, those can be very useful, as the loss from an earlier year is set off against gains before deduction of the annual exemption.

Capital losses are automatically carried forward to be used against gains in a future year, but the loss must be claimed on the tax return first. To be eligible to be carried forward, a capital loss must be claimed within four years of the end of the tax year in which it arose, so by 5 April 2023 for losses that arose in 2018/19.

You may have potential capital losses from holding cryptocurrencies, following the crypto market crash in November 2022, or hold other assets that now have little or no value.

If the assets (e.g. shares) still exist, you may wish to make a ‘negligible value’ claim to create a capital loss. We can help you claim your capital losses or make negligible value claims.