Loss Relief against Total Income (1)

Question 1

How is the loss calculated?

Answer 1

On an accounting period basis. Accounting period is then assessed using normal bases of assessment

Question 2

A loss for the year ended 30 June 2022?

Answer 2

May be relieved against total income of 2022/23

Question 3

Relief against total income and loss?

Answer 3

Loss must be set off to maximum possible extent subject to a cap on income tax reliefs

Question 4

Relief against total income and personal allowances?

Answer 4

Personal allowances may therefore be lost as total income

Question 5

Relief against total income and tax year?

Answer 5

A claim against total income may be made for either tax year of the loss or previous year or both

Question 6

What does a cap do?

Answer 6

Limits the amount of loss relief available against a person’s total income

Question 7

The cap is the higher of?

Answer 7

£50,000
25% of person’s adjusted total income

Question 8

How is adjusted total income calculated?

Answer 8

Total income - gross amount of any personal pension contributions

Question 9

What does the cap not apply to?

Answer 9

Any trading profits within the total income figure