If I have invested for 5 years in a row and made loss each year, can I use those loses to negate any profit I have made in regards to UK capital gains tax?

For example, if I made a loss of £1k for the last 4 years, for my 5th year would the tax-free allowance be 16.3k instead of 12.3k?

1 Answer 1


Yes you can, provided that you have reported your losses to HMRC.

Losses don't have to be reported immediately but must be claimed within 4 years of the end of the tax year in which the disposal occurred ('disposal' usually means sale, e.g. sale of shares).

You would normally report losses and gains via a Self Assessment tax return.

Technically, it doesn't actually change the tax free allowance (called the Annual Exemption Amount) on capital gains, but it does have the effect in reducing your tax liability.

GOV.UK Capital Gains Tax/Losses

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