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Dear Tutor,
below I have an example on CGT where a person has £2,000 capital losses b/f, but she has 2 types of gains
– £24820 that qualifues for ER
&
-£11000 that does not qualify for ERSo in my computation can I split the capital losses b/f ? Thank you. My computaion below or @ https://yadi.sk/d/wZFl8TdrC5VMn
GAIN WITH ER GAIN WITHOUT ER
shares disposal 24 820
other disposals 11000
less capital losses b/f (1 600) (400)
less AE (10 600)capital gain 23 220 0
CGT @ 10% 2 322
Losses and AE are firstly deducted, in that order, from those gains that do not qualify for ER, hence the losses of 2,000 are deducted firstly from the 11,000 followed by 9,000 of the AE. This achieves relief at the highest tax rate and leaves the 1600 balance of the unused AE to reduce the ER gains. This will give the same taxable gain as you have shown above which will indeed be taxed at 10%.
If the only gain to arise in the tax year had been the 11,000 then you would only have used 400 of the loss b/f so as not to waste any of the AE and the taxpayer would then c/f the unused loss of 1600
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