Order of Loss Relief

[CG]

Hi

I am wanting to allocate a loss against current and prior year income and wanted to check I am able to do it as I propose.

The details are:

2011

Self-Employed Trading Loss £35,000
PAYE Earnings £5,000
Dividend (Grossed Up) £7777

2010

Self-Employed Profit £31,000
PAYE Earnings £8,333 - Tax Deducted From This £2,509
Capital Gain £36,000

Can I Opt to Carry Back £32,858 to offset against the self employed profit and PAYE earnings of 2010, without losing the personal allowance, and keep £2,142 to offset against 2011 other income?

I have looked at various options and this seems to save the most tax. I'd be really grateful if someone could advise if this is the best option and indeed if it is possible.

Many thanks

[maths]

No, a partial claim as you suggest is not possible.

I assume the trading loss has not arisen in the first 4 tax years of trading.

[CG]

No trading has been for many years.

What is the best way to do this? Do I have to offset against 2011 other income first and then carry back?

Many thanks for your help

[maths]

In 2011 given your personal allowance and the tax credit attached to the dividend, no income tax liability arises.

Thus, carry back to 2010 for offset; need to lodge an appropriate claim.