Difficulties

Question 1

What assets are included in Business Relief?

Answer 1

100% relief - sole trade business or partnership interest, shares in an unlisted trading company

50% - assets used in the business, quoted shares where owner owns more than 50% of voting rights

Question 2

Company’s trading losses options

Answer 2

1. Take away from total profits in current year (then deduct charitable donations)
2. Take away from total profits in the previous three years (then deduct charitable donations) (capped at 2 million)
3. Carry forward to a future year (after taking off charitable donations)

Have to use in current year first!

Question 3

Trading losses for sole traders or partners

Answer 3

1. Use all of their losses (no partial use) against total income in current year.
2. If there is loss remaining, use it to reduce capital gains in the current year OR
3. Use it against total income in the year before
4. Carry it forward against losses of the same trade