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Capital Loss

[ˈkæpɪtl lɒs]



A Capital Loss occurs when an asset is sold below the price it was originally purchased at. It can be used to offset Capital Gains for more tax efficiency.

More detail:

A Capital Loss occurs when an someone sells an asset for less than its original purchase price. This loss can be used to offset Capital Gains and reduce the amount of Capital Gains Tax owed.

Capital Losses could also be Carried Forward to the next year in order to offset a Capital Gain made the next year, and thus reduce the amount of Capital Gains Tax paid next year. If the Carried Forward loss only reduces your Capital Gain to a level still below the Capital Gains Tax Allowance, it is possible to carry left losses to a future tax year.

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