The number of years you can carry forward capital losses depends on the tax jurisdiction:
- In the United States , there is no limit on the number of years you can carry forward capital losses. If your capital losses exceed the annual deduction limit ($3,000 per year, or $1,500 if married filing separately, as of 2025), you can carry the unused losses forward indefinitely until they are fully used up
- In India , both short-term and long-term capital losses can be carried forward for up to 8 assessment years immediately following the assessment year in which the loss was first computed. To carry forward losses, you must file your tax return on time for the year in which the loss was incurred
- In the United Kingdom , you can claim capital losses up to 4 years after the end of the tax year in which the asset was disposed of
- In Australia , there is no time limit on how long you can carry forward a net capital loss. You can use it to offset future capital gains indefinitely
- In Canada , you can carry capital losses back up to 3 years or forward indefinitely to apply against capital gains income
Summary Table
Country| Carry Forward Period| Notes
---|---|---
United States| Unlimited (indefinite)| Annual deduction limit $3,000; carry
forward unused losses indefinitely348
India| 8 assessment years| Must file return on time to carry forward losses15
United Kingdom| Up to 4 years after tax year end| Must claim within 4 years2
Australia| Unlimited (indefinite)| No time limit on carrying forward net
capital losses9
Canada| Carry back 3 years, carry forward indefinitely| Losses can offset
capital gains; some exceptions apply6
This means in most countries, capital losses can be carried forward for many years, often indefinitely, except in India and the UK where specific time limits apply.
