Trading Losses

Question 1

Carried forward losses

Answer 1

Against: Profits from SAME trade
Time limit: Indefinite c/f
Conditions: cannot restrict to preserve PA
Claim: automatic

Question 2

CY and PY (12m only)

Answer 2

Against: Total income (NSI>SI>DI)
Order: Any, Py 1st pref
Conditions: All of nothing
Claim: 12m from 31 Jan FTY (optional)

Question 3

Restrictions of CY and PY

Answer 3

1) HIGHER of:
a) 50k
b) (25% x ATI)/(Total Inc +payroll giving + gross PPS)
.
2) non-active traders, max =£25k, remainder c/f

Question 4

Non-active trader

Answer 4

Works < 10hrs a week

Question 5

Early year

Answer 5

Against: Total income
Order: Carry back 3 yrs, FIFO
Conditions: All or nothing
Restrictions: same as ‘CY and PY’

Question 6

Terminal loss

Answer 6

Against: Same trade profit
Order: Carry back 3 yrs, LIFO
Conditions: All or nothing
Claim: <4yrs from last TY (optional)

Question 7

Trading losses abasing Capital gains

Answer 7

*Must do CY claim for trading losses first
Max offset, LOWER of:
a) unrelieved trading losses
b) CY capital gains - CY cap losses - b/f cap losses

Question 8

Property losses

Answer 8

Only go against future property gains