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Calculation of grant under the SEISS

How would the calculation be affected by reliefs claimed

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Is the grant to be based upon the profits that were taxable after claiming Overlap Relief? I have a couple of clients who, upon my advice, changed their accounting dates to mop up the Overlap Relief brought forward. Will the Relief be treated as say Capital Allowances would and the actual income taxed be used? I agree this would be fair. But I cannot find HMRC's view.

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By soundadvice
11th May 2020 12:48

One of my first clients who tried to claim the SE grant had it rejected because for 2019 HMRC saw rental profit of 9,000 (fromBox 13 of the UKP pages) and SE profit of 8,000. They appear to have ignored the losses brought forward on the property (in Box 14 of the UKP page) which totally wiped out the rental profit for 2019. So I believe HMRC should use SE profit of 8,000 and rental profit of NIL so claim should be valid. At this stage they seem to be ignoring the loss relief. We have appealed.

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By cohen
11th May 2020 14:03

Brought forward losses are ignored for these purposes, per the guidance.

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By sammerchant
12th May 2020 13:24

Thank you. A link to the guidance would be extremely helpful.

If it is https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-... it does not specifically refer to Overlap Relief but to losses brought forward.

Could one argue that Overlap Relief is a form of 'loss'? I'd feel happier with confirmation from HMRC.

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