Hi, I've been helping my brother do his end of year financial accounts and as he registered online for self assessment he has until the 10th of feb to file his return. He will have taxed income from limited company as a director including dividends and has a loss from his self employed commercial property rental business. Can this loss be set off against his other income and which forms besides self assessment need to be completed.
From what I have looked into, it would seem that he would need to complete SA105 as well as self assessment form. Is there anything else?
Unfortunately you can't offset the property loss against other income. This can only be carried forward to next year. Form SA105 UK Property needs to be completed which summarises the income and expenses from the commercial property. SA105 is a supplementary page to the self assessment tax return which will need to be completed in full.
If he has a limited company then he might receive a salary which will also need to be disclosed as well as any dividends received from the company.
In addition to my original question, my brother received £22,000 during 2007/2008 taken from the debenture loan in the limited company. How will this be dealt with in his self assessment.
The only way of drawing money from a limited company is by declaring a dividend, receiving a salary or directors loan drawdown. Assuming the debenture is in the companies name I'd guess your brother received the money as a dividend. Your brother should have a dividend slip to cover this amount so I'd check with him first.
