Hi peeps, does anyone know off hand if I can set off approximately £8,500 accumulated b/f self employment losses against 2011/12 - £90,000 Capital Gains.
Retirement Relief applies so the CGT bill is about £9,000.
There is a loss in the 11/12 year of £2400 which I have set off against other income so that's taken care of.
I can't seem to find a way of setting the earlier b/f £8,500 losses against the £90K other than carrying them forward then claiming against earlier years on the 12/13 Return.
Be grateful for any advice or tell me I'm losing my marbles.
Dont think you can offset b/f self employment losses against anything other than self employment profits. Same way you cant offset capital losses b/f against anything other than capital gains.
Though dont have tax notes in front of me so happy to be corrected.
Yeah think I am, you can offset losses in the year against other income in that year but when you carry back and forward I am sure it has to be of the same schedule ie trading losses against trading profits, capital losses against capital gains.
My tax knowledge is that out of date that i have ordered ICAS TPS tax course notes and going to spend the next 6 months wading through them. Been 15 years since I last looked at them and I think a few things have changed in tax since then, lol.
I think Mark is correct. General rule of thumb is that for non limited co organisations (and the ordinary peeps like you and I), income and losses must be from the same stream...which is annoying and unfortunate, but such is life!
