How are capital losses offset against capital gains?
- Article ID
- ias-10326
- Article Name
- How are capital losses offset against capital gains?
- Created Date
- 9th February 2012
- Product
- IRIS Personal Tax
- Problem
- How are capital losses offset against capital gains?
- Resolution
- Iris automatically offsets the current year gains against current year losses or brought forward losses. It offsets in the order below: 1) The gains made on and after 23/06/2010 that DO NOT qualify for entrepreneurs relief 2)The gains made on and before 22/06/2010 3) Then the gains made on and after 23/06/2010 that DO qualify for entrepreneurs relief For example: There are brought forward losses in 2011 which are greater than the current year gains. Iris will first offset the losses with the gain that has the latest acquisition date. It will keep on offsetting up to the last £10,100 gain which will be offset against annual exemption. The remainder of the losses will be carried forward.
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