INDIVIDUAL LOSSES

I
 ✓
✓ 2018119

Tax Return Capital losses

- -
# I F I T f- # - -

- -

by
-

loss
- -

Capital relieved
-

Income Tax Return -

can be an Individual -
-
- -
- -
-

- -
✓ -
✓ -
✓

Non
Saving Saving Dividend
against Current
his own - -
-
- - -

Employment year gains

and then
against
-

1)
-

income xxx
- -

2) Future capital gains Income

Trading Tax return 18119 19120 20121
-

income xxx
- .
-

Property Trading 25.000 35.000

-

income ✗ ✗✗ income 10.000

-

Pension available 58.000

choice
Employment
No is 10.000 20.000
-
✗ ✗✗ income
-

income
-
-

Real Estate Inv Trust current claim not allowed

In claim
partial is 83.000 20.000 55.000
-

✗✗
Total
-

year
✗
income
_
- .

CIF done Personal ( 12,570) ( 12.570) ( 12,570)

Trust income ✗ ✗✗ ✗✗ ✗ In claim
partial claim can be Allowance
-
- .
-

Interest
for indefinite period Taxable 70.430
-

income
-
✗ ✗✗ -
-

CIF is .
income 7430 42.430
↓ * *
Dividend ✗ ✗✗ rate Basic rate
Higher
income
- -

Higher taxpayer
-

rate tax
death capital losses taxpayer
offset
Total In the will
Payer
of
income ✗ ✗✗ ✗ ✗✗ ✗✗ ✗ -

loan interest ( ) ( ) ( xxx ) year

current
,

and then CGT return 18%9 19120

Qualifying
xxx 20121
year gainslast
xxx
1,

Net back
against 3year gains
✗ ✗ ✗
carry
✗✗✗ 2, 20.000
chargeable gains
income ✗ ✗✗ 20.000 20.000

( ) (xxx ) (xxx ) allowed 18119 120.000) ( 300 ) ( 7700)

Personal Allowance xxx No
partial claim in current
year
is
Capital
loss
-
-
_

In allowed 19.700
Taxable
partial
income ✗ ✗✗ ✗ ✗✗ ✗✗ ✗
back claim claim is 0 12,300
carry
.
-

( wasted) ( 12,300) ( 12.300)

Annual Exemption
CGT Return -

7400 -

DP ✗ ✗ ✗

Cost ( ) xxx Loss Tax

Benefit
Memo

chargeable gain
✗ ✗✗
September 2018 __

capital loss : 28.000

Annual Exemption (12,307 118/19)
Taxable (2%000)>(20.000-12,300)×20-1
gain
✗ xx 18119
year gain
c. = = .

✓
8,000 = 1540

Individual Losses elf

relief
:

loss ( 300 ) 35
Trading
→
1) 19120--20,000-12,300=7700 300×101 . =

( 7700) 7700×201=1545
Property loss 20/21 20.000-12,300--7700 →
2) =

3
, capital loss -
3110
 18119 20--121
-

oof
Property
- - → -
-

loss
-
-
- - - - -
- -
-

-
-

-
-

-
-

- I - PGL loss be relieved

property in
- -

can
- - -
- _

✓
-
-
-
✓ - - - - - -
-

✓ - → No choice is available
following
- -

0m¥
-
-
- .

manner
-
- -

- ✓ -
✓ -
✓

and
- - -

year Property
b Current income then
=
✓
19125 Future
Income tax return 18119 2012 / 2
Property income .

,
-
10.000 35.000 35.000 Income tax return 18119 19120 20121 Claim allowed in current
Trading No Partial is
year
-

35,000 CIF
Employment 38,000 25.000 20.000
Trading
10,000 35.000
0¥ in .

Total income 48.000 60.000 55.000

Employment
38.000 15.000 20.000 CIF is
for indefinite period .

Personal Allowance ( ) (12,570) (12.570) Total income 48,000 50.000 55.000

47430 42,430 Personal Allowance ( 12,570) ( 12,570)

E ↓
rate rate 42,430
← 37,430 rate
Higher Higher Higher
→

↳ Basic
taxpayer tax
Payer 37,700-37.430=220
- rate
taxpayer
tax
Payer .

CGT Return 18119 19120 20121 •

20%1
•

(GT Return 18119 19120

Chargeable gain 10.000 20.000 20.000

(1%00) (7700 ) ( 23¥

18119
chargeable gains
-

loss
=
Capital 10,000 20.000 20.000

-
12,300 17,700 20121 =
Capital loss ( -
) ( 770°) ( 20.000J
Annual
Exemption ( wasted ) ( 12,300) ( 12.300) -

-
-

5400 Annual Exemption (Wasted

Loss Memo

Tax Loss
Capital loss =

January 2019 = 20.000

Benefit
Memo

(18/19) n January 2021 =

Capital loss : 35,000 -

Deathyear_
Tax
Benefit
c. 18119 (10,000) > 10.000-12,300 = 0
(20/21) AE
year gain
=

10,000 20/21 (2-0,000) → (20.000-12.300)×20.1 1540

year gain
= =
c. = .

CIF to 15.000
future carry
back last
3gears
(7-100) →
19120 = 20,000-12,300--7700 ( 7700) → 7700 ✗ 20% = 1540 19120 =
20.000-12,300=7700 7700 → 270 ✗ 10% =
27

20121 =
20,000-12,300--7700 (23%-32300×20-1 . = 460 18/19 = 10,000 -12,300 = 0 (O ) 7430×20-1 . = 1486

-
2,000 17118 = NIA ( _

) 7700 3053

✓
Wasted = 7300
 -

Losses 19120
Trading loss relieved
E¥ 18119
30.000 (15%00)
-
- -

Trading can be in
following Trading income
-
-

40,000
Property
-

income 50.000
manner :

off against
set current total 30.000 30.000
Employment
1 income
year
- -
-

total Tax
set
off against
last
Relief
2, 12 months income -
-

set ✓
3
future trading
✓

off against
income .
-

_ _
_

not Solution
Sequence is
necessary
-
.

_&

No
partial claim is allowed 181-19 19120
of
in
any
-

30,000 ②
the Option Trading income Income tax return 31.3.20 31-3-21
- -

50.000 40,000
Property income
Trading income 20,000 ⑤
-

30.000
Trading loss
relief against Employment
30.000
Property 68.000
-

total income is income 75.000

restricted to : Total income 110,000 70.000 Total income 88.000 75,000

Trading income t £50,000 (8%00) (5%000) 31.3.21 =

Trading loss (70.000 )

-

(50¥ -

18.000 25,000

✓
Personal Allowance ( 12,570) ( 12,570)

-
This £50,000 restriction increases Loss Memo Taxable income 5430 12.430

to total
¥ £209000
loss 150.000
25%
Of
income 19120
Trading
=
a =

person
's income exceeds .

c. total income 19120 (50.000) 0 +50.00° CGT return 31.3.20 31.3.21

year
c. back last 12m total income 1811980 # . 30.000+50.000
Chargeable gains 14,000 12,500

(14.000) (12.500)
Trading future
elf to
offset
also 20.000
loss 31.3.21
-

it
chargeable gains after
has
offset
total income that loss
of year
.
memo

loss 180.000
31-3-21 =
Trading =

> NO
Partial claim is allowed c. total 31.3.21 (5%00) > 0+50.000
year
.
income :

> NO 50,000 restriction c. back last 12m total income : 31.3.20 (70¥ → 20.000+50.000

31.3.21 (12,5-00)
year gains
c. :

c. back last 12m ( 14,000)

gains
= 31.3.20

to
future
CIF 33.500
 -
- -
-

- - -

- -
-

-
- -
f-
- -

-
- -
-

. =
✓
-

✓
- _ _

Income tax return 31-3-20 31-3-21

✓
③ 100,000 Income tax return
Trading income 31.3.20 31.3.21
-

31.3.20 :

Trading loss (9%000) Trading income 30.000 -

⊖ -

98.000 45.000 70.000

Property income
Property income 55,000

Total income 98.000 145,000 Total income 100.000 55.000

(40.000)②
55,000 ①
31.3.20 =

Trading loss ( 50.000) 31.3.21 -

_

Trading loss (8° .

48,000 55.000 20,000 15,000

Personal Allowance ( 12,570) ( 12.579 Personal Allowance ( 12,570) ( 12570)

Taxable income 35,430 42,430 Taxable income 7430 2430

CGT return 31.3.20 31-3-21 CGT return 31.3.20 31-321

14,000 12.500 12,000 6500

chargeable gain Chargeable gains

Loss Memo

31.3.20
Trading loss 140,000 Loss Memo
=
= .

(5%00)
Trading
→
c. total income 31320 01-50.000 31.3.21 loss 120.000
year
=
= =

(90-000) 31320 → 30.0001-50.000

CIF
trading income 31.3.21 c. back last 12m total income
= =

-
40.000

( total income 31.3.21 ( 40.000) -3 0+50.000

year
=

-
 ⑥_ __⊖ ✓ 18119 18119

opening year Trading

-
loss
- - -
-

-7
- -
_ c-- -

- -

4 trade
- -

Trading
-

losses in
first years of
- -
are
-
-
-
- -
- -

called
opening year trading
-

losses
-
- -
- -
-
- -
. - - -

- - -

have to be
Opening year trading losses
-

-
-
-

- - - - - -

relieved
-

following
in manner :
C ✓

total 313.16L 31.3.17 31.3.19 31320

Offset months
31.3.18 313.1831-3.19
against
income 31.3.16 31-3^17 31-3-20
↳
of -0
-

Trading
-

Trading
-

FIFO basis 12.000 ⊖ 5.000

-

last then
-

36 income income
-
-

on
- - - -
-

2
,
offset against current
year
total income 313195rad .
loss (1%000) Employment 22.000 15.000 35.000 -
-

and then
Employment 12,000 25,000 78,000
Property 17,000 28.000 4,000 2,000 4.500
- -

25,000 Total 39.000 43,000 9500

against future trading Property
3) CIF income .
30.000 45,000 12,000 12.000 income 39.000 2,000

Total income 42,000 70,000 103,000 12,000 24.000 31.3.19 : Trad loss
.
(39.0*143.000)
" ' °O°
Loss
relief
restriction
applies opening
31-319
Trading ok42.io)
/ (5-0.000) (50%0 112,000) 31,000 2.000 9500
- -
-
__
on

53,000 (wasted) (wasted) ( 12,570>(20007/9500)

against
loss claim total income 20,000 12,000 Personal Allowance
year
- -
.

Personal Allowance (wasted) ( 12,570) ( 12.570) (wasted) ( 12,000) Taxable income

-
-
18.430 - -

-
NO Partial claim is allowed .
Taxable income
-

7430 40.430 _
-

loss memo

loss 90.000
31.3.19 :

Trading = →
first year of
capital not last 36m total trade
against
is
gains
Claim available income
c. back
opening
-

in last 36 months FIFO basis loss

on
year
.

Loss Memo -

31.3.16 =
01-50.000 (3%000)
Trading loss business 01-50,000 (43,000)
first
350,000 31-3.17
31.3.19
year of
- =
= = -

loss loss 31^318=01-50.000 (8000 )

opening year relief opening year
-
.
-

total last 36 months

of
income
-

on FIFO basis .

-
31.3.16 (42,000 ) > 01-50,000

-
31.3.17 (50.000 ) > 01-50,000

31.3.18 (5-0,000) > 01-50.000

c. total inc 31319 (12,000) > 01-50.000

year
- . =

Clf to 31-3-2042 #
future trading
-
inc .

CIF to 184.000
future
 ceasation
- - -

Terminal loss
Trading loss
- - - -
-

-
memo

loss ceasation
Trading loss in last 12 months
of
business - 31.3.21
Trading 250.000
year
-
-
. = :
-

Loss in the ceasation Normal loss

option Terminal loss
year of
. - .

Terminal
trading loss has to be relieved current total in -31-321 (25-000) -

01-50.000
year 12m
- -

c. back last total inc 40.000) 45.0001-50.000

against
-
-
.
:

Current 31.3.19 31.3.20 31320

Trading and then
income 31.3.17 31.3.18 31.3.21
year
-

Last 36 months
trading Trading 20.000 30.000 50.000 45,000 -

c.
capital gains
-

31.3.21 (15-5.000)
year Wasted
income on
- -
- -

LIFO basis
Property 25,000 25,000 25.000 25,000 25,000 -

Partial Claim allowed Total 45,000 55.000 75,000 70,000 25.000

-

-
No is .
income

31.3.21 : Trad loss .

(70.000) (25.000)
In Individuals it to 45.000 55.000 75.000
-

possible claim
_

is
-

loss Terminal loss rather Personal ( 12,570) ( 12.570) ( 12,570) (wasted) (wasted
relief
Normal on ,
Allow .

than Terminal loss Taxable 32.430 42.430

taking relief income 62,430 - -

added Terminal loss

Overlapping profits
-
are in .

Chargeable gain 200,000

-
- - -

IF last
accounting period less 31.3.21 Trad loss 455¥
of
-
is -
_
.

than 12 months then terminal loss needs 45.000

,

to Exempt (12,300)
be composed . Annual .

Loss last Taxable 32,700

in
fiscal year ✗✗×
-

Borrow
from previous fiscal year
xxx
-

Terminal loss ✗ ✗✗ Loss Memo

ceasation
Overlapping Profitsloss
✗ ✗✗ 31.3.21
Trading loss 250.000 Terminal loss
-

= =
→ =

Total terminal ✗✗✗

Terminal loss
relief C- )
year trading
current inc .
-

31.3.21

then 36 months
> -

if loss borrow last

trading inc .

then don't borrow LIFO basis (45,000 )

if profit
- .

on 31.3.20

31-3-19 ( 50.000 )
31.3.18 ( 30.000)
wasted 125,000
 ceasation
⑧ - -
-
-

Loss memo
-

①
-

87,005
✓ ✓ ✓
ceasation
Trading loss →
31.3.21
year
=
=

Terminal loss .

0 loss
relief
Normal

current total inc 31.3.21 ¢5000) → 01-50.000

year
.
=

31.3.17 31-3-18 31.3.19 31-3-20 31.3.21 C. back last 12m total inc . -
_ 31-3-20 (3%000) → 29,0001-50.000

yeargainwa;µ34§-
80.000 85.000 ②
Trading 150.000 29.000 c.

31-3-21 -5rad loss

- (5-8,000) (2%000) ( -

)
9000
Property 7500 8000 5000 5000

Total income 157.500 88,000 94,000 34,000 5000

36,000 5,000

Personal Allow . ( 12,570) ( 12,570) ( 12,570) ( 5000) ( 50007

Taxable income 144.930 75,430 23,430 _

-

chargeablegain 10.000
-
-
- -

Annual
Exempt .
40,0007
- - - -
-

Loss memo
87,005 ceasation
Trading loss
→
31.3.21
year
=
=

Terminal loss Terminal loss

relief
.

C- ) 31.3.21
year trading
current
-

-
inc .

last 36m
trading inc on
-
.

LIFO basis 31.3.20 (2-9,000)

31.3.19 (5-8.000)
31.3.18 ( -

)
wasted -
 12m
- - - -
- -

31.12.19 30.6.20
-

3m 3¥ 31.12.18
µ pg
④ €0
18119 19/20 20/21
① asation 1.1.20
-→ 20121
- - -

1.4.20
* ""9
30620
60.000 ⑨
--- =
Trading income 50.000

Terminal than Terminal loss (7-500) ( )

last
accounting
loss less 12min19s 30.6.20
period of
-

> is :

terminal
therefore
loss will be composed .
Total income 50.000 60,00052500 -

30.6.20 __ Normal loss (75-00)

last (20/21) 50,000 45.000
Loss in
fiscal year
-

✓
-

(15.000)
3
1.4.20 30.6.20 = ✗3 =
(75-00)
6 Loss memo

Borrow previous fiscal year (19/20) 9m loss

from 12m -3m Normal 7500
- > : 30.6.20 = =

(75-00)
accounting period
-

last c. back last 12m total inc .

19120

1.1.20
3m
313.20=(15.0003×3%17500) -

second
accounting period
last =
6¥
-

12m 60,000 30,000 Terminal loss 7500

-31=62
30.6.20
37 ✗ 6
= =
- =

( )
year trading
12 current in .

20121 -

(75¥
trading
22,500 > 0 last 36m inc .
19120

18119 ( -3
Terminal loss 7500 17118 ( -3
-

Total loss = 15.000

Terminal loss = 7500 Normal loss __ 7500

Overlapping Prof . ✗ ✗✗

7500
Terminal loss
 12M

D- -
- -
am

a
- -

8- 1.1.20
3M 6m
⑤ ceac-ationl.lo.iq
-

9129.4.20
- -

'
✓ -
- g _
20121 30.9.20
-
↳ 20121
__ ←

Terminal loss composition : Last

Accounting period is

og
less 31.1218 31.12.19 30.9.20

than 12 months
therefore
Terminal loss needs to be
composed . 18119 19120 20121

③
Loss in last
Trading Profit
30-9-20 Terminal loss
30.000 25.000
(4000 ) ( )
fiscal year 201¥
-

-
-
. .

1.4.20
6m
30.9.20 (6000)= ✗
6¥
> 4000 Total income 30.000 25,00%000 -

9m 30.9.20 __

Trading loss G. ) 000

19,000
Borrow
from previous fiscal9m year 1912=0 12m -6m 6m= 30.000
-

-
: = :

Last
accounting year
6m
3¥ (60007×3--12000)
-
-
:

9
Second 6250 Loss
last
accounting gear 25.000×3 Memo
-
=

30.9.20 Normal
trading loss
12m 6m -3m 12 2,000
3m=
- = = =

4250 > 0 c. back last 12m total income 19120 (20007

-

Total loss =
6,000

30.9.20 =
Terminal trading loss =
4,000

c.
year
9 last 36months
trading income
✓
current 20121 ( -

)
year
-

Terminal loss : 4,000 Normal loss :

2000 -

19120 (4000 )
(
overlapping Profit 7
18119
-

-
-

4000 -
17118 ( -

)
-