Hi,
I m helping my dad to file his tax return for 2018-19.
There is a self employemd profit of £4538 and Pension received £9305 giving total income of £13843
I have availibale loss from previous year of £4127
Do I need to utilise whole loss in this year against the profit from self employemnt or can I use only £1993just to brig my taxable profit to NIL . The rest would be covered by personal allowance of £11850?
Can I carry remaining loss forward £2134 to the next year?
When I phoined HMRC they said I need to utiluse whole loss, but i thought I would waste my personal allowance by doing so?
Any help would be greatly appreciated.
Thanks!
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Replies (9)
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Losses need to be taken in full - reducing self employed taxable profit to £411
See S.84 ITA 2007
Because my dads profit for 19/20 is higher so would be beneficial to use this loss next year rather than loosing some of the personal allowance in the year 18-19. Its just a thought tho
Having a look at claims for AIA and/or WDA re 2017/2018( if loss arose in that year ) and re 2018/2019 might be your best bet.
Where you are carrying forward trade losses, you have to deduct any unrelieved loss from the profits of the trade of the next tax year.
thank you. Can I choose not to use it? and use it next year?
No. Them's the rules. But see what DJKL said about Capital Allowances. You don't have to claim them. Also you could look at disclaiming allowances for last year too. But hurry - you've already had 41 of your 43 weeks......