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Hi,As a remittance basis user, I'm looking to make election for foreign losses to be allowable.https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg25330aWhat kind of information should I provide on the letter and where should I send over?Thanks
PostedFri, 24 Nov 2023 16:13:08 GMTbyHMRC Admin 10
Hi
You will give details/dates of the losses and send this to HMRC, PAYE & Self Assessment BX9 1AS.
Hi, Sorry but just to clarify, I'm NOT look to claim capital losses (as I don't have any gain this year) during this tax year, but just look to "make election for foreign losses to be allowable".Is there any special form, ie should I make claim on SA109, to use to make this election? Or simply just write a separate letter saying I want to make loss election and post it? Thank you.
PostedTue, 09 Jan 2024 14:16:09 GMTbyHMRC Admin 5
Hi
If you complete a self assessment tax return, then you need to complete the supplementary page that relates to the losses, eg. SA108 (capital gains), SA103 (self employment) SA104 (partnerships) in order to declare the loss to carry forward.
If you do not need to complete a tax return, then you can claim the loss in writing, submitting supporting calculations to explain the loss.
The losses can be carried forward indefinitely and set against a future gain. You have 4 years from the end of the tax year in question, to claim losses.
Any claim for losses older than that, will be rejected as being out of date.
Thank you
Is my understanding correct that:I have to "declare" the loss amount the same tax year the loss arisen. This amount has to be mentioned at the supplementary page of SA108. (since I have complete a tax return).Once I declare the loss, within the next 4 years I can "claim" this amount and set against a futures gain.So for example, if I have capital loss tax 22/23, I have to declare it tax year 22/23, and can claim this amount to set against a futures gain within next 4 tax year?
PostedTue, 16 Jan 2024 09:19:45 GMTbyHMRC Admin 19
Hi,
You have to report the loss or gain within 4 years of it arising. There is no timeline on when it needs to be used.
Thank you.
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