complex

[colin66]

Hi Guys

I need to understand what I can do with the 97/98 transitional overlap

For 19/20
I have employed income £80,000
But extra SIPP pension contributions made of £25,000

self employed net profits of £3000 ( accounts to 30/4/19) been olky a little higher in last few years

Property income £3000

I have Capital gains ( property) , in 19/20 , and more likley in a few years time , but also have been c/fed a CG loss ( more than this years liability but less than the future one)

From May19 my business effectively closed- but receives about £50pm income... so think I could cease for as from 30/4/19, or wait another year and report a zero profit after trading allowance 20/21 ?

All fairly simple but I have overlap property £30,000 from 97/98
If I apply my overlap relief does it turn into a loss, and what can do with this.

Can I use it to reduce my employment income ( savings a mix 40 and 20%) ? ( if so might it be better to wait until where income less pension contr. will be higher..saving 40%)
Can I use it to partially reduce my CG liability so that bit would be 28%, and leave he CG loss intact for later

Or do I need to use it against s/e profits , and if so can i go back?

thanks for your help

[bd6759]

Has your business ceased? That has to be determined as a question of fact. That determines when the overlap relief can be used.

Overlap relief is deducted from the profits. It might generate a loss which you could utilise using the usual loss rules.