New – Trading loss relief helpsheet
HMRC have issued an updated version of Helpsheet 227 entitled ‘Losses’. The helpsheet is intended to act as an aide memoire when completing computations that reflect losses from a trade, profession or vocation . Also covered are losses attributable to a taxpayer by a partnership of which he is a member.
The document explains the main ways of relieving losses for the 2009/10 tax year including:
- Offsetting against income for the year ended 5 April 2010 and if income is nil or less then the loss can be offset against capital gains for the year ended 5 April 2010
- By claiming for relief to be calculated by reference to income for earlier years or capital gains for the year ended 5 April 2009
- By claiming for relief to be calculated by reference to profits of the same trade taxed in earlier years
- By carry forward against future profits of the same trade or income from the company
The helpsheet also briefly covers the following topics:
- Claims not made in a tax return
- Claims made in a tax return
- Tax adjustments for earlier years
- Relief against income, profits and gains: restrictions
- Losses on cessation of trade
- Summary of how allowable loss is to be relieved