So looking for some help as I’m not entirely sure of how it works.
I used to use the Invest account but sold everything and have a Realized profit/loss of £-500
I had money in the ISA account then and it’s Realized Profit/loss is about £-12 but my current investments in it equal to about £-1200
I know stupid investments made but that’s not the point.
So what I’m looking to know is if I was to sell my current shares in the ISA, can any of the losses from either accounts be deducted from my normal income tax and if so how do I got about it.
All investments have been made within the past 4 years.
I am not an expert so hopefully others who are more knowledgeable than me will answer you as well. However, fwiw here’s what I think is the situation:
ISA is tax free but also you can’t use loses in an ISA against other tax liability. What happens in an ISA stays in the ISA type rule.
In terms of the Invest account there are several comments. First when you originally bought the shares is generally irrelevant the tax situation materialises when they are sold (B&B rules aside). So if you bought shares 4 years ago it’s irrelevant it is when you sold them that’s the important thing. If you make an overall loss in a tax year you can roll it over. So your £-500 should qualify. I THINK that you don’t need to declare the loss for 3 years but if you are going to carry it over beyond that limit you have to declare it to HMRC who will acknowledge it. I am not sure but my assumption would be that a CGT loss in one year can only be used against a CGT profit in another year (it cannot be used against income to reduce income tax). The other important point is that it is your overall position so if you have any other capital gains/losses in the year you can only roll over/carry forward the overall loss. So if you had Invest accounts with two companies and made a £-500 loss with one and £600 profit with the other you have an overall gain of £100 and cannot carry forward the £-500 loss. ISAs aren’t part of this calculation
No. Not against your income tax or any tax for that matter. Not sure where you learned that.