Where you sell listed company shares at a loss this would be treated as capital loss. This loss can be offset against capital gains araising in the same tax year or in future tax years.
Capital gains/ losses are calculated by deducting the orginal cost of the asset, plus any enhancement expenditure, from the selling price. The cost of the shares includes any fees paid on the purchase of the asset (shares) and the money received on sale is reduced by any fees incurred on the sale of the asset (shares). Tax allowable fees include legal fees, stamp duty and stockbroker’s fees.
Any Capital losses must be offset against any gains arising in the same tax year and if there is a net gain, then the annual tax free exemption (currently £10,100) is applied. If there is a net loss, it is carried forward to future years until relief can be given.
Using losses in this way is a key tax planning point, so it is recommend you take advice from us before selling any shares at a loss.