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i’m facing difficulties on this topic… I understand that a tax payer cannot choose the amount of loss to be deducted from income so the p.a/aea may b wasted. is it possible to deduct some portion of the gain and preserve the aea .. and carry the loss forward? coz i saw in some questions that if the cgargeable gain is, say 11000 and a loss is 1500 then 200 is deducted to preserve the aea and the remaining is carried forward.. it is really confusing
The taxpayer must net losses of the year against gains of the year even if the gains are below the level of the AEA (10,900) and therefore waste those losses. A capital loss b/f however is only used against net gains of a year in excess of the AEA and is not therefore wasted. See OT course notes chapter 12 section 2.
The taxpayer must net losses of the year against gains of the year even if the gains are below the level of the AEA (10,900) and therefore waste those losses. A capital loss b/f however is only used against net gains of a year in excess of the AEA and is not therefore wasted. See OT course notes chapter 12 section 2.
what should be the treatment of the losses b/f from the trading income to chargeable gains after all the income in that year is reduced to zero? should i sett off the loss fully or preserve tha AEA?
If the taxpayer makes a claim against total income and then makes the claim against the net chargeable gains of that tax year then the loss is treated like a current year loss and may therefore reduce the net gains of the year below the level of the AEA.
@Taxtutor said:
If the taxpayer makes a claim against total income and then makes the claim against the net chargeable gains of that tax year then the loss is treated like a current year loss and may therefore reduce the net gains of the year below the level of the AEA.Please, a claim against current (2013/14) year loss can mean you can only set off other loss against current chargeable gains in the same year, that is, 2013/14 and not 2012/13?
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