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Tax credits and losses b/fwd revisited

Tax credits and losses b/fwd revisited

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Can old losses b/fwd pre tax credits still be used against profits for 2004/05 for the purposes of Tax credits?

Extract from Additional Revenue Guidance issued in March 2004.
"Secondly, on the matter of claimants bringing forward trading losses from years prior to 2001-02 in accordance with the original claim form guidance notes, the Revenue have confirmed that they have no objection to these claimants obtaining relief" - but this would appear to relate to a specific question posed about losses b/fwd being set against 2001/02 income.

TC825 working sheet only refers to "losses of the year" with no reference to b/fwd losses.

On the face of it, "old" losses cannot be so relieved for tax credit puposes. Does anyone agree - or disagree?

Kevin Salter

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By dorothysaint
10th Aug 2005 10:42

brought fwd losses for tax credits.
I too have had some difficulty with this. I think you can use earlier years losses brought fwd to 01/02 and not utilised. I have referred to the comment you quote and also http://www.litrg.org.uk/help/lowincome/selfemployed/losses.cfm.this link is to the low income taxes reform group where it states that for tax credit purposes ,unused losses brt fwd to 01/02 can be utilised.Hope this helps and that you agree! There seems to be a distinct lack of clarity with regard to losses and not much interest from accounting web member

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