This discussion clarifies whether short-term capital losses can be adjusted against long-term capital gains (LTCG). The answer is yes, you can offset your short-term losses against LTCG. The calculation involves applying tax rates of 10% or 12.5% to LTCG exceeding £6 lakhs, after considering the £1.25 lakh exemption under section 112A, depending on when the gain was earned.