Flashcards in Chapter 11 - Relief for Other Losses Deck (6)
Other Losses include:
- Losses from a UK or overseas property business
- Losses from non-trading loan relationships
Losses from a UK Property Business
All profits and losses from rented properties are pooled. Losses must initially be set against total profits in the current accounting period. This is automatic and is given in priority to any trading losses of the year.
Excess UK Property Losses
Excess loss is carried forward and may be treated as a property loss in the next period. It's not automatic. Must claim within 2 years of the end of the AP. Not all or nothing.
Overseas Property Business Losss
These are pooled together with any profits. Any resulting loss is then carried forward and set against the profits of the overseas property business of future accounting periods. It is not set against any current year income
Loan Relationships - Non-Trading Deficits (LR)
Interest paid and received on NTLRs is pooled together to get a net profit or loss/deficit. A deficit can be relieved by:
- Offset in the current year against profits of any kind before QCDs
- Carried back against NTLR income in the previous 12 months
- Carried forward against future profits
NTLR deficits are very flexible and are used in priority to trading losses and losses of a UK property business