Share this content
9

Offset of trading loss against capital gain

Offset of trading loss against capital gain - capital allowance restriction

Didn't find your answer?

I'm reviewing the possibility of offsetting a trading loss against a capital gain arising in the same year. HMRC's helpsheet HS227 refers to some restrictions as follows :-

The amount of loss relief you claim against income or capital gains may be restricted or limited for example if you:

worked for less than 10 hours a week on average on commercial activities of the trade

are a Limited Partner or a member of a Limited Liability Partnership

have a trade which is carried on wholly overseas

have claimed certain capital allowances

have income from oil extraction activities or oil rights

Can anyone shed any light on the "certain capital allowances" restriction as I don't seem to be able to find any further guidance in respect of this.

 

Replies (9)

Please login or register to join the discussion.

By ireallyshouldknowthisbut
29th Jan 2020 16:39

Try TCGA1992, S260 ish.

Thanks (0)
Replying to ireallyshouldknowthisbut:
Psycho
By Wilson Philips
29th Jan 2020 17:07

Don’t think those provisions are particularly helpful. The allowances in question are things like certain trade leasing allowances, certain AIA etc

Thanks (0)
Replying to Wilson Philips:
avatar
By Tax Dragon
29th Jan 2020 18:16

As per s75f ITA 2007?

I've seen this once in practice. And I'm as old as The Doctor.

Thanks (0)
Replying to Tax Dragon:
By Charlie Carne
04th Feb 2020 10:38

Which one? Spoiler alert....there's two of them now!

Thanks (0)
Replying to charliecarne:
avatar
By Tax Dragon
04th Feb 2020 10:55

Some people in here think there are two of me.

But I've told myself off for talking to myself so much in public.

Thanks (0)
avatar
By Wanderer
29th Jan 2020 17:49

Those dodgy film or other IP partnership CA claims?

Thanks (0)
Replying to Wanderer:
avatar
By Essex34UK
29th Jan 2020 18:00

Noooo - nothing like that.
A retiring metal engineer with a factory full of plant and tooling that he couldn't get anything for. He was told that their removal would involve the costs of lorries and cranes and that "they just weren't worth it". That's left him with a general pool value brought forward into his final trading period but no disposal proceeds at cessation. Hence, the resulting loss.

Thanks (0)
Replying to Essex34UK:
avatar
By Wanderer
04th Feb 2020 11:06

Wasn't inferring it was with your client, just a suggestion to answer your question:-
"Can anyone shed any light on the "certain capital allowances" restriction"

Thanks (0)
Replying to Essex34UK:
Hallerud at Easter
By DJKL
04th Feb 2020 11:08

Surprised about that, old kit like that tends to sell. We offloaded a large lathe and a milling machine last year, the buyer was going to service and resell them.

Years ago I used to do management accounting for a decent size sheet steel fabricators, they would buy old kit and adapt it to do particular tasks, especially bending and folding. (cutting had moved on to laser cad systems)

There are plenty of hobbyists that will pick up smaller professional quality machines at reasonable prices and there are also still some good precision bits of kit available and selling like this.

https://www.ebay.co.uk/itm/Lathe/153817813255?hash=item23d0419107:g:pIcA...

Thanks (0)
Share this content

Related posts