Skip to contentSkip to search

Allowable capital loss (UK individuals)

For an individual, allowable losses of the current tax year are generally deducted from gains of that year. Unused losses from earlier years may then reduce remaining gains above the annual exempt amount, with unused balance carried forward subject to claim and statutory rules. Losses on some transactions, including certain connected-person disposals, have special restrictions. Verify the tax year, amount, eligibility and timing before applying the loss.

Worked example

For 2025–26, assume an individual has gains of £9,000, current-year allowable losses of £2,000, brought-forward eligible losses of £5,000 and a £3,000 annual exempt amount. After current-year losses, use £4,000 of brought-forward losses to leave £3,000, and carry forward the remaining £1,000, assuming no other restrictions.

Common mistake

Deducting all brought-forward losses even when doing so needlessly wastes the available annual exempt amount, or assuming every loss is allowable.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA TX (UK) Direct June 2026–June 2027