Losses brought forward
Losses brought forward
When data is rolled forward from the previous year and unused capital losses, clogged losses or Non-Resident capital losses exist, these are displayed by clicking on the Losses brought forward icon on the Ribbon Bar at the top of the screen as below:
Capital Losses
The calculated brought forward capital losses appear in the following fields as relevant:
- Unused losses of 1996-97 and later years
- of which, available against NRCGT
- Unused losses of 1995-96 and earlier years
- of which, available against NRCGT
If the calculated figures are not available, or incorrect, then tick the Tick to provide override figures box and enter the required amount(s).
Clogged losses
A clogged loss occurs when a loss is set against gains made on other disposals to the same connected person or losses transferred by trustees when the taxpayer becomes entitled to settled property, but only where the transfer occurred after 15 June 1999.
The calcultated brought forward clogged losses appear in the following fields as relevant:
- Unused losses of 1996-97 and later years
- Unused losses of 1995-96 and earlier years
If the calculated figures are not available, or incorrect, then tick the Tick to provide override figures box and enter the required amount(s).
Non Resident CGT losses
The calculated brought forward non resident capital losses appear in the following field as relevant:
- Unused losses of 2016 and later years
If the calculated figure is not available, or incorrect, then tick the Tick to provide override figures box and enter the required amount.
Adding a connected person
A connected person is a husband, wife, or civil partner living together during the tax year that the asset is disposed. Other examples of connected persons include brothers or sisters. Refer to page CGN 5 of the Tax Return: Capital Gains Summary Notes for a definitive list of connected persons.
To add a connected person's details, click on the icon on the Ribbon Bar at the top of the screen as follows:
- Select the next blank row.
- Enter the title and name in the Name column.
- Enter the relationship in the Relationship column.
Please note that warning messages are displayed when:
- The connected person name is not unique
- The relationship, but no name is entered.
Adding a connected person to a disposal
- From the main Capital Gains data screen, enter basic transaction details for a new disposal.
- Or select an existing disposal, then press the Full Details button.
- Select the Connected Person drop down arrow and click on the name of a person added as above.
Deleting connected person
To delete a connected person first ensure no unused losses are brought forward, and the connected person is not entered in any current year disposal.
- Select the row for the relevant connected person.
- Press the Delete button.
Please note warning messages are displayed when:
- Brought forward losses exist for the connected person being deleted
- The current connected person is entered in any current year disposal
Note: If brought forward losses exist, but are incorrect or no longer required, override these losses with zero in the Loss brought forward data screen. When details are rolled forward to the next tax year, as no losses then exist the connected person can be deleted without error.
Rollover Relief
Rollover Relief is a capital gains tax relief, which applies when an individual disposes of a business or a business asset and spends the proceeds on acquiring replacement assets during a qualifying period.
Add Rollover Relief
- Open the Rollover Relief section in the data entry list.
- Enter the name of the asset disposed in Original asset name.
- Enter the disposal date in Date disposed.
- Enter the amount received in Proceeds.
- Select Is provisional to defer the capital gain until a replacement asset is purchased.
Note: When you select the Is provisional option you do not need to enter any details relating to the replacement asset until you know what it is.
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Under Application of proceeds of old asset, enter the details relating to the new asset.
This includes the following:
- Description (describe the asset)
- Date acquired
- Cost (purchase price)
- Proceeds used (amount of proceeds used from original asset)
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Click Save and Close.
Holdover Relief
Use the Holdover Relief section in the data entry list to defer capital gains and transfer the liability to another party. When an asset is given away for no monetary gain and a capital gain arises, then the holdover relief scheme allows the transfer of the original base cost of the assets to the receiver of the gift. When the recipient disposes of the asset, then the recipient's gain will include the gain held over on the gift, and they will be liable for any capital gains tax.
Add Holdover Relief
- Open the Holdover Relief section in the data entry list. The section opens with the Details tab selected by default.
- Briefly describe the asset in Description of the asset.
- Enter the amount of the gain in Gain held over.
- Select the Type of relief, either Held over gain or Deferred valuation.
- Under Transferor specify the person transferring the asset by doing one of the following:
- Select Is Transferor the client, if the client is the person transferring the asset.
- Click Name. The Select Transferor Name window appears, which allows you to search for or create a new client.
Note: when you select the option Is Transferor the Client then you cannot complete the Transferee section.
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To transfer the asset click Name. The Select Transferee Name window appears, which allows you to search for or create a new client.
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Click Save.
To Make a Claim
- Click the Claim tab.
- Select the reason for qualifying from the Qualification for relief drop-down. The reason you select here determines the fields that you have to complete.
- In Person owning the business, enter their name.
- Complete the remaining applicable fields.
- Click Save and Close.