CGT Profit and loss

[beattie]

I was wondering if anyone could clarify a point relating to CGT for me.

I made €700 profit on one share I held last year but I lost €2500 on two other shares which went a bit pear shaped

What I was wondering was since the $700 profit was less than the €1270 allowance in can I carry forward the full loss into another tax year which could mean I could make approx €3770 before paying tax?

 

[ClubMan]

No - you have to offset previously incurred losses before using the annual CGT allowance so in this case you "use up" €700 of your previously incurred losses of €2,500 and don't get to use any of your annual CGT allowance of €1,270 unless you have further gains of more than €1,800. Note that the annual CGT allowance cannot be carried forward to subsequent tax years. See here (my underlining):

2. Personal exemption

The first €1,270 of an individual’s net gains (i.e. gains less losses, including losses brought forward from earlier years) are not chargeable.

 

[bazermc]

I agree clubman.....CGT legislation is quite strict in this area....in effect you cannot preserve losses by using the exemption first and of course you cannot carry forward unused annual exemption nor can you use the exemption to create a loss