Perspectives · Tax
August 2026 · SUI Securities
Most people think about tax losses in December, after a bad year, with the portfolio already down. By then the loss is worth less than it looks and the decision is being made under pressure. There is a quieter, cheaper approach: tidy the portfolio while it is doing well.
A realised loss stays available to set against future gains, as long as it is reported to HMRC within the time limit. That makes a good year the cheapest moment to book a loss: you have gains to absorb it, and nothing is wasted.
Selling a holding at a loss and buying something similar inside an ISA or pension can keep your exposure while removing the position from the taxable account. Care is needed with the 30-day rule, which can void the loss if you buy the same shares back too soon.
Portfolios accumulate positions that no longer earn their place. Reviewing them in a strong market is calmer than reviewing them in a weak one, when the temptation is to sell everything at once.
Every disposal needs a date, a cost and a value, and the same share bought at different times can have several cost bases. Clean records are the difference between a relief you can claim and one you cannot evidence.
This article is general information, not tax advice. Rules and allowances change, and the right answer depends on your own position. Speak to a qualified adviser before acting.
No. Once a loss is realised and reported to HMRC within the time limit, it can be set against gains in later tax years. Losses are not wasted by having a good year.
Not in the same form. If you buy the same shares within 30 days of selling, the loss can be disallowed and matched against the repurchase instead. Buying a similar but different investment, or holding the exposure in an ISA or pension, avoids that trap.
A loss must normally be claimed within four years of the end of the tax year in which it arose. Keeping dated records of disposals, costs and values makes the claim straightforward.
No. Selling only makes sense if the position no longer earns its place in the plan, or if the tax saved outweighs the dealing costs and the risk of being out of the market. We review the holding first, then the tax.
We can look at your holdings and show where losses are sitting unused. A partner replies within five business days.
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