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When reliefs are being claimed on opening yrs loss relief for FIFO, should we claim for previous three yrs or use yr 2019/20 first and then deduct from 2016/17 onwards for claiming losses as early as possible?
For beneficial use, is it ok to skip yr 2019/20 and move back to previous tax yrs or it is mandatory to use current yr claim before?My second point is whether full trading profit amount needs to be claimed for FIFO/LIFO basis or partial can be made to save personal allowance?
Referring to this question bpp no99
Ceased trading on 31 dec 2019..use of lifo basis
2019/20 trading loss 23100
Property income 12 600
2018/19trading profit 3700
Property income 12 600
Make claim in the most beneficial wayPart Answer is keep 12600 for personal allowances and then deduct loss from 2018 gain of 3700
My issue why it is making use of partial claim or am i making mistake that relief is to be taken from trading income only and not property income or chargeable gain in income tax basis?
I think you need to go back to the lectures on income tax losses to get a better understanding of the different loss reliefs and the basis of choosing which loss reliefs to apply – partial claims cannot be made.
You have not shown information about gains nor the full answer – but you should know that an extended claim against chargeable gains can only be made after a claim against total income for that tax year has already been made! You can certainly choose however to make no current period claim against total income and instead make the claim for the preceding tax year.
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