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Where Taxpayers and Advisers Meet
Income Losses to offset against capital gains
Hi I have overlap relief to carry forward in my very small business which is greater than my profit for the 2014/15 tax year. I have made a capital gain from the sale of an investment property. Am I able to use my overlap relief which would incur a business loss to offset any of the capital gain. If so where on the tax return to make this claim?
Re: Income Losses to offset against capital gains
No. Overlap relief is used when the business ceases or when you change the accounting date.
In any event, a tradings loss cannot be set against a capital gain.
In any event, a tradings loss cannot be set against a capital gain.
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King_Maker
- Posts:6538
- Joined:Wed Aug 06, 2008 3:22 pm
Re: Income Losses to offset against capital gains
While I agree with your first statement, I do not agree with the second.No. Overlap relief is used when the business ceases or when you change the accounting date.
In any event, a tradings loss cannot be set against a capital gain.
Section 261B TCGA 1992 permits a trading Loss to be set against a Capital Gain(s).
Re: Income Losses to offset against capital gains
Hi again. I have changed my year end to 05.04.2015 so that I could potentially use the overlap relief. My income is now so small that I do not use up my personal allowance and so had hoped to offset the overlap relief against the capital gain. King Maker states that under Section 261B TCGA 1992 I can offset my business loss against the gain. Where on the online tax return would I make this claim please.
Re: Income Losses to offset against capital gains
Of course i does. Senior moment.
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King_Maker
- Posts:6538
- Joined:Wed Aug 06, 2008 3:22 pm
Re: Income Losses to offset against capital gains
The Loss Claim can be made via Box 16 on the Capital Gains Summary pages.Hi again. I have changed my year end to 05.04.2015 so that I could potentially use the overlap relief. My income is now so small that I do not use up my personal allowance and so had hoped to offset the overlap relief against the capital gain. King Maker states that under Section 261B TCGA 1992 I can offset my business loss against the gain. Where on the online tax return would I make this claim please.
Re: Income Losses to offset against capital gains
Thankyou to King Maker. I have read and tried to understand the accompanying notes to the capital gains tax pages. My overlap relief is only £6,000. If I use this would I lose any of my annual CGT exemption of 11k? The notes seem to imply that you can only use amounts in excess of the 11K. Am I mis-understanding.
