Checked for the 2026/27 tax year Independent — not affiliated with HMRC or the UK Government
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UK tax losses · 2026/27

Made a loss? Put it to work on your tax.

A loss is only worth something to you if you claim it — in the right way, against the right income or gains, before the clock runs out. These guides explain how, in plain English, from HMRC’s own rules.

What kind of loss is it? — start the checker

General information, not tax advice — your situation may differ, so check with HMRC or a qualified adviser. Independent: not affiliated with HMRC or the UK Government.

Worked example · capital gains · 2026/27
Gains on shares sold this year£14,000
Loss on a fund sold this yearminus (£2,500)
Net gains£11,500
Losses brought forward — usedminus (£8,500)
Gains after losses£3,000
Annual exempt amountminus (£3,000)
Taxable gains£0
Losses carried forward to next year£500
£9,000 of earlier losses were available; only £8,500 was needed to bring the gains down to the annual exempt amount, so £500 carries on.

An illustration using the 2026/27 annual exempt amount of £3,000. Try your own figures · How the order works

Next loss deadline 31 Jan 2027

Where a loss can go: back, forward, or both

Claim deadlines →

Each kind of loss has its own route through the tax years. Capital and rental losses only move forward; trading losses can also go back — one year with sideways relief, three years at the start or end of a business.

Capital lossesSet against gains of the same year first
Carried forward — no time limit
Trading loss: sideways reliefThis year and/or the year before
previous year
Unused loss carried forward
Trading loss: early yearsFirst 4 tax years of a business
3 years back · earliest first
Trading loss: terminal reliefFinal 12 months of a business
3 years back · latest first
Rental (UK property) lossAgainst future rental profits
Carried forward
Company trading lossBy accounting period, not tax year
12 months back
Carried forward
Timeline: the 2026/27 loss year, with how far each kind of loss can be carried back and whether it can be carried forward. Capital losses: Set against gains of the same year first. No carry back. Carried forward — no time limit. Trading loss: sideways relief: This year and/or the year before. Carry back: previous year. Unused loss carried forward. Trading loss: early years: First 4 tax years of a business. Carry back: 3 years back · earliest first. No carry forward. Trading loss: terminal relief: Final 12 months of a business. Carry back: 3 years back · latest first. No carry forward. Rental (UK property) loss: Against future rental profits. No carry back. Carried forward. Company trading loss: By accounting period, not tax year. Carry back: 12 months back. Carried forward.

The guides

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Clocks running now

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The next loss-related time limits from today (1 November 2026), worked out from the rules in our guides.

Calculators

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Key figures 2026/27

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Capital Gains Tax annual exempt amount (individuals)£3,000Checked 4 October 2026 for the 2026/27 tax year
Capital Gains Tax rates for individuals18% and 24%Checked 4 October 2026 for the 2026/27 tax year
Cap on certain income tax reliefs (including sideways loss relief)£50,000 or 25%Checked 4 October 2026 for the 2026/27 tax year
Making Tax Digital for Income Tax: qualifying income threshold from 6 April 2026£50,000Checked 4 October 2026 for the 2026/27 tax year

Common questions

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Do I have to report a capital loss to HMRC?

There’s no penalty for not reporting a loss — but a loss you don’t report can’t be used. The law says a capital loss is only an allowable loss once you have given HMRC notice of it, with the amount, within 4 years of the end of the tax year.

Report it in the capital gains pages of your tax return, or by letter if you’re not in Self Assessment and have never made a gain.

How long do I have to claim a capital loss?

Up to 4 years after the end of the tax year in which you disposed of the asset. A loss made in 2026/27 (the tax year ending 5 April 2027) must be claimed by 5 April 2031. The deadline calculator gives the date for any year.

Will losses brought forward waste my annual exempt amount?

No. Losses brought forward from earlier years are only used to bring your gains down to the annual exempt amount (£3,000 in 2026/27) — the rest carries on. It is losses made in the same tax year that are set off in full, even if that takes your gains below the allowance. Try the set-off illustrator.

Can I carry a capital loss back to an earlier year?

Generally not — capital losses carry forward. The main exception is the tax year someone dies: losses that can’t be used in that year can be carried back against gains of the three previous tax years, latest first, only down to each year’s annual exempt amount.

The record-keeping shelf

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HMRC can ask for evidence of a loss years later. A few things that make keeping it easier — via Amazon.co.uk.

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