Farming 5 year loss rule

Farming 5 year loss rule

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Hi 

I have a client you has traded as a farmer for many years, some years making a loss, some years a small profit.

Last year he had made a loss (before C/As) for the 5th year in a row, relieving the losses against other income.

He brought his wife and son into the partnership, with his son having 51% share from 6th April 2015.  

My question is, now that it is a partnership does the 5 year rule start anew, can he set his share of the loss against other income in this current year?

I have searched HMRC website but cant find any information?

Just to note, this was not the reason he set up the partnership, this is purely an after thought, it is more to do with income to be reported to Tax Credits than to get any tax back.

Does anyone have any experience on this or can tell me where to look.

Thanks

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By Portia Nina Levin
21st Jan 2016 13:42

No.

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