This discussion clarifies whether a long-term capital loss from a previous year must be adjusted against current year long-term capital gains, especially when those gains are below the exemption limit. The consensus is that losses can only be adjusted against taxable gains, not exempt income. Therefore, if your current year's long-term capital gains are less than £1 lakh (and thus exempt), the previous year's loss of £10,000 cannot be adjusted and can be carried forward to a future year when taxable gains are available. Section 74 of the Income Tax Act is cited as the relevant provision.