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“In the 2023/24 tax year, Nina realised a chargeable gain of £17,400 and incurred a capital loss of £10,100. She also has unused capital losses of £5,300 brought forward from 2022/23.
How much of her capital losses will be available to carry forward to the 2024/25 tax year?”
Dear tutor,
In the proforma of CGT computation, chargeable gains is the result of capital gains deducting captial losses in tax year. But why in this question, they still account for capital loss (£10,100) by taking it off from the chargeable gain (£17,400)?
I thought the chargeable gain has already accounted the capital loss.
The solution results in a net current year gains of £7,300 (£17,400 – £10,100), which does not make sense to me.
Can you please explain?
Thank you!The question gives you the gain on one asset (£17,400) and the loss on the other asset (£10,100), so the net chargeable gain for the tax year (current year gains less current year losses) is £7,300.
You are simply misunderstanding the terminology.
Ah, I see what you mean: If it’s mentioned of “chargeable gains”, it means gains of all sold assets. But here it’s only a chargeable gain of one asset.
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