Offsetting an Investment Loss Against CGT

CantThinkOfANam

Hi all.

I have two investments I would like information on regarding CGT please.

Investment A is currently at a loss and investment B is currently at a gain.

If I withdraw both investments, can I offset the loss on investment A against CGT due on the profit from investment B?

The investments are with different fund providers.

Hope I've given enough information, thanks very much.

SureYWouldntYa

Yes your thinking is correct

You can offset anything subject to CGT against something else subject to CGT, eg an investment house against shares

Saudades

You can't offset losses on ETF's though.

SureYWouldntYa

Saudades wrote: »

You can't offset losses on ETF's though.

If an ETF is subject to Exit Tax then you're right. Funds subject to Exit Tax are a bit useless when it comes to utilising losses as losses are ringfenced to that fund, can't even offset one fund that's at a loss against one that's a gain

CantThinkOfANam

Thanks for the bad news lol. Was just going to clarify that I was wrong in thinking it’s CGT, but was exit tax.

Seems very unfair, they take your money when your winning but if you make a loss they don’t care.

SureYWouldntYa

Yeah between the fact that

• You can't offset losses
• You don't have an annual exemption
• The higher tax rate (41% Exit Tax vs 33% CGT)
• And the 8 year deemed disposal rule

There is a lot of cons for anything subject to Exit Tax compared to CGT

mrskinner

When a gain on sale of “ A “shares in one name exceeds one’s personal exemption, can the capital loss established years ago on jointly (h and wife taxed as a couple) owned “B “ shares be used to reduce CGT on those A shares?