Calculations and claims

Losses arising to trustees are calculated in the same way as they are for individuals. Capital losses are automatically set against any gains of the same tax year; any that are unused can be carried forward and set against gains arising in subsequent years. They cannot be carried back and set against gains of a previous year (except in some unusual circumstances).

Losses brought forward are only set against gains of subsequent years to the extent required to reduce the gains of that year to the amount of the applicable annual exemption. In this way, none of the annual exemption is wasted.

Losses must be claimed in order to be allowable, normally on the Capital Gains supplementary pages of the Trust and Estate Tax Return. The general time limit for claims and reliefs is four years from the end of the year of assessment to which they relate. It is advisable to include details of capital losses on the annual tax return as a matter of routine, even though there is