Losses Flashcards
how can you use losses to relieve profits
current year claim
carryback of losses
carry forward relief
why would you use current year and carry back before carry forward relief
timing - they relieve the loss more quickly and therefore best for cash flow
what order are capital losses relieved
against current accounting period gains
against gains in future accounting periods
in what order must you relieve losses against income
non savings, then savings, then dividends
if you make a claim what must happen
the maximum amount must be set off
what needs to be considered when choosing which year to offset a loss
not wasting personal allowance
what is the maximum loss you can offset against TOTAL INCOME
higher of 50000 or 25% of the persons net total income, this does not include trading income
how can you use a carry forward loss
it can be relieved against the first available future profits from the same trade
how is carry forward relief set off
its automatic and compulsory
what kind of loss relief can you use after using as much as you can for total income loss relief
loss relief on chargeable gains
3 things to consider when choosing which year to claim loss relief on chargeable gains
rates of tax
wasting personal allowance
timings
who can claim for early trade loss relief
sole traders
how many years can early trade loss relief be carried bacj
3 tax years
annual pension allowance
5000
