Loss relief

Loss relief

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Hi,

I have a client who I have done the personal tax return for in 2015 and 2016. 2015 had a loss and he opted to relieve it against his employment income for that year as he felt he was going to make a profit in future years. After doing the return for 2016 he has made a loss again. Can this loss now only be carried forward?

Thanks

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By Norma Snob
19th Aug 2016 14:44

It is "for whom I have prepared" Amy.

More information will be needed to answer your question though. Is there other (eg employment) income in 2016? Might an early years' loss claim be appropriate?

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Replying to Norma Snob:
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By amy-jab
19th Aug 2016 21:24

There is no other income in 2016. Can an early years' loss claim be used if a different type of loss relief was used last year?

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RLI
By lionofludesch
20th Aug 2016 09:20

Indeed. Each year's claim is a new one.

And don't forget to carry forward your Class 4 losses. That's a separate claim too.

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Replying to lionofludesch:
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By amy-jab
22nd Aug 2016 11:09

Thank you for the help. For the class 4 losses - do I have to note them anywhere on this year's tax return to say I am carrying forward a loss or do I just keep a schedule for myself and deduct from next year's proft?

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