Capital Loss Recovery Planner
Calculate how much capital gain you need to generate to offset your losses before they expire.
TL;DR
- ►Capital losses can offset capital gains, reducing your tax bill.
- ►In the UK, losses can be carried forward indefinitely — but must be reported to HMRC.
- ►CGT rates 2026: 18% (basic rate) / 24% (higher rate) for most assets.
- ►Losses are used against gains of the same tax year first, then carried forward.
- ►Always report losses to HMRC even if you have no gains that year.
Calculate your recovery plan
Total losses not yet offset
Over how many years do you plan to recover?
UK CGT: 18% basic / 24% higher rate
Results
Fill in the fields above and click Calculate to see the plan.
Which instruments can you use?
In the UK, capital losses on most assets can offset capital gains on most other assets (with some exceptions for chattels and personal property).
Offsettable instruments
- ✓Shares & stocks(disposal gains)
- ✓ETFs & investment trusts(disposal gains)
- ✓Bonds(capital gain on disposal)
- ✓Crypto assets(disposal gains since 2018)
Cannot offset losses
- ✗Dividends(income, not capital)
- ✗Interest(income, not capital)
- ✗ISA gains(exempt — no losses either)
⚠ Important: report losses to HMRC
UK capital losses do not carry forward automatically. You must report them to HMRC within 4 years of the end of the tax year in which the loss arose. Unreported losses cannot be claimed. File a Self Assessment return or contact HMRC directly to register your losses.
What is capital loss recovery?
Capital loss recovery means intentionally realising capital gains to offset accumulated losses and reduce the CGT you owe. In the UK, losses carry forward indefinitely once reported to HMRC. The annual exempt amount (£3,000 in 2026) means that careful planning can further reduce your CGT bill.
Which instruments work for offsetting?
Most capital assets qualify: shares, ETFs, investment trusts, bonds, crypto and second properties. ISA holdings are exempt from CGT entirely — gains and losses inside an ISA do not count. The "bed and ISA" manoeuvre (sell outside ISA, crystallise gain/loss, rebuy inside ISA) can be a useful planning tool.
How to plan the recovery over time?
Since UK losses carry forward indefinitely, there is no expiry pressure — unlike Italy or Spain. Focus instead on using losses in years when your marginal CGT rate is highest. The annual exempt amount (£3,000) means you can realise some gains tax-free each year regardless. Consider timing large gain realisations to coincide with years when you have significant carried-forward losses.
Frequently Asked Questions
How long can I carry forward capital losses in the UK?
UK capital losses can be carried forward indefinitely, with no expiry. However, you must have reported the losses to HMRC within 4 years of the end of the tax year in which the loss arose. Losses are set against gains of the same year first, then against the earliest gains in future years.
Do I need to report losses even if I have no gains?
Yes. To carry forward a loss, you must claim it on your Self Assessment return within 4 years of the end of the tax year. If you miss this deadline, the loss is permanently forfeited.
What is the CGT annual exempt amount in 2026?
The CGT annual exempt amount is £3,000 for 2026/27. You can realise up to £3,000 of net gains per tax year free of CGT. Any losses are first set against your gains of the year before reducing them below the exempt amount.
What is a "bed and ISA" and how does it help?
A bed and ISA involves selling shares outside an ISA to crystallise a gain or loss, then rebuying the same shares inside an ISA. Future gains and income on those shares are then sheltered from tax. Losses crystallised this way can be carried forward to offset future gains.
Can DonkyCapital track my UK CGT position?
Yes. DonkyCapital imports transaction data from connected brokers and calculates realised gains, losses and tax position in one dashboard, helping you plan gain realisation around your annual exempt amount.
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