Capital Gains Losses

worm_tongue

Is there a limit on the number of years capital losses can be carried forward for? I didn't think there was but a colleague trying to convince me on there was some sort of 4 year rule?

Itchianus

No, the 4 year limit relates to claims for repayment. CGT losses can carry forward indefinitely until a chargeable gain is realised.

worm_tongue

thanks Itchianus, when you say claims for repayment, do you mean once a chargeable gain occurs have you 4 years from that point to use all the losses?

Itchianus

worm_tongue wrote: »

thanks Itchianus, when you say claims for repayment, do you mean once a chargeable gain occurs have you 4 years from that point to use all the losses?

I'll use an example:
Say you took a bath on Eircom shares or similar, and sold them at a 10k loss in (say) 2003. This loss carries forward and must be used against your next chargeable gain.

Now say you sold a property at a gain in 2006, and made a return and were assessed and paid CGT on it without using the loss from 2003.

And now in 2012 for whatever reason you realise that you should have used the 10k loss from 2003 to reduce your CGT payable in 2006. As it's now beyond 4 years since the year where you should have used the loss, you won't be able to claim the repayment that would accrue to you by amending the return.