How long do I have to claim a capital loss?

Four years from the end of the tax year in which the loss arose.

Can property losses reduce income tax?

Generally no. Capital losses on property only reduce capital gains.

How does the calculator use losses?

Losses you enter are deducted before the annual exempt amount and split equally between joint owners.

Capital losses and property

Allowable losses reduce your chargeable gains. Losses must be claimed within four years of the end of the tax year of the loss.

Updated for the 2026/27 tax year · Reviewed against HMRC guidance

Order of set-off

Current-year losses are set against current-year gains in full, even if that wastes the £3,000 exempt amount. Brought-forward losses are only used to reduce gains down to the exempt amount.

Allocating losses to higher-rate gains

You can allocate losses to gains taxed at the highest rate first, maximising the tax saving.

Connected persons

A loss on a disposal to a connected person (e.g. a relative) can only be used against gains on disposals to that same person.

Frequently asked questions

This guide is general information based on the Taxation of Chargeable Gains Act 1992 and HMRC guidance (including HS283). It is not personal tax advice — for complex cases speak to a qualified tax adviser.