Chapter 8 Unincorporated trader losses

Question 1

s.64 claims (CY, CB) are a…

Answer 1

All or nothing claim meaning loss of Personal Allowance

Question 2

S. 64 (CY, CB) claim is against

Answer 2

Total income for the year.

1. non-saving, 2 saving, 3 dividend
(Before PA)

Question 3

S.83 (CF claim) any losses carried forward are offset against…

Answer 3

future available trade PROFITS

Question 4

What is the quickest way to get loss relief

Answer 4

CY, CB, CF

Question 5

What would gain the biggest tax relief for a trader loss?

Answer 5

Offsetting the loss against the fiscal year with the biggest net income.

Question 6

S.261 B claim (gains relief) what can be relieved against what?

Answer 6

any remaining loss from a S64 can be offset against a traders capital gain for the year.

Question 7

S.72 (opening year claim) allows losses to be

Answer 7

Be offset against GENERAL INCOME for the first
3
Years

Question 8

S.89 (terminal loss) is the loss for which period?

Answer 8

The final 12 MONTHS of trading

Question 9

Where is relief given for terminal losses

Answer 9

The TRADING profit for the previous 3 tax years on a LIFO basis…

Question 10

What is the cap for loss reliefs

Answer 10

Higher of

1. £50,000
2. 25% of adjusted net income

Question 11

How many years do the opening year loss rules apply?

Answer 11

4 years