Capital gains tax is a tax that’s charged on the profit you make when you dispose of an asset that has increased in value.
It’s the gain you make that’s taxed, not the amount of money you receive and some assets are not liable to capital gains tax. Those that are are called ‘chargeable assets’.
Every individual has a capital gains tax-free allowance, which is currently £12,300 each tax year. You may be able to reduce your tax bill be deducting losses made in the same tax year.
If you make a loss on a chargeable asset when you dispose of it, you can report this loss to HMRC to reduce your total taxable gains. Losses used in this way are called ‘allowable losses’.
Write to HMRC to claim a CGT loss: www.gov.uk/gov...
HMRC guidance on Negligible value claims: www.gov.uk/gov...
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