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Chloe.
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Chloe
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This is from your first lecture on this topic:
A claim against total income in 2014/15 would waste the personal allowance for 2014/15 and save no income tax. The claim in 2013/14 will also waste the PA but will generate a repayment of tax of 20% on a taxable income of £21,000 (31,000 – 10,000).
Please can you explain this?
If you lose out on PA then does this mean if the total income of the current tax year is 10000 or less you should not claim in the current tax year and only if it is more than 10000 to do so?
Thanks
Tax Tutor
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Yes, and even if the total income exceeds 10,000 it may still be a good idea not to claim relief as this may still be an inefficient use of the loss, for example if the total income is say 15,000 and the loss is 20,000 then a claim if made would have to be for 15,000 which would mean that only 5,000 of the 15,000 loss used would actually have saved any tax being paid!
Chloe
- Topics: 95
- Replies: 243
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Thank you
Tax Tutor
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