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ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax: gains and losses on the disposal of shares and securities

In the 2025/26 tax year, Omar has a chargeable gain of £20,000 on quoted shares and an allowable loss of £6,000 on other shares disposed of in the same year. He also has capital losses of £20,000 brought forward from earlier years. The annual exempt amount is £3,000. What amount of capital loss is carried forward to 2026/27?

£9,000 is carried forward. The current-year loss reduces the gain to £14,000. Brought-forward losses are used only to bring the gain down to the £3,000 annual exempt amount, so £11,000 is used and £9,000 of the £20,000 remains.

  1. A£9,000Correct
  2. B£6,000
  3. C£3,000
  4. D£14,000

Explanation

The current-year loss is set against the gain first, leaving £14,000. Brought-forward losses are used only to reduce the net gain to the annual exempt amount, so £11,000 is used, leaving £3,000 covered by the annual exempt amount and nothing taxable. The loss carried forward is £20,000 − £11,000 = £9,000. Using £14,000 would waste the annual exempt amount and leave £6,000.

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