I am trying to better understand how long after a capital gains loss, you can offset value against a capital tax gain. The Government website states;
When you report a loss, the amount is deducted from the gains you made in the same tax year.
If your total taxable gain is still above the tax-free allowance, you can deduct unused losses from previous tax years. If they reduce your gain to the tax-free allowance, you can carry forward the remaining losses to a future tax year. You do not have to report losses straight away - you can claim up to 4 years after the end of the tax year that you disposed of the asset.
does this mean one of the two scenarios below is correct?;
Scenario 1: You must claim your losses within 4 years of them occurring and, you must also use the losses within that time. If any gains are made after those 4 years then, these losses cannot be used to offset the tax.
Scenario 2: You must claim your losses within 4 years of them occurring but, once they have been claimed you can then use them at any point in the future to offset tax for any gains?