Losses

• Losses and Capital Allowances  If you are likely to make a trading loss in the current accounting year and there are no ligitamate ways to set the losses against other income, make sure that you talk to us before you invest and claim for new equipment, or make a claim for assets that you already own. For self employed tax payers claiming Capital Allowances can waste tax relief that can be more effectively clamed in future years. 
  
• Set trading losses against capital gains made in the same year. However, where the capital gains are subject to taper relief it may be better to carry the trading losses forward to set off against future profits. Otherwise, the trading losses will be tapered (reduced) with the capital gains.
  
• Disposing of shares in an unquoted company at a loss? As long as you acquired the shares by subscription and not by transfer from an existing shareholder, you can elect to set the loss of capital invested against your income! Call us and we can arrange a claim under TA 1988, ss574-576.
  
• Claim capital allowances, a minimum 25% of the original cost, if you hire out the family yacht. This may turn a rental profit into a loss. The good news is the rental activity is a trade. The even better news is you can set any loss against your other income!