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I have been through the section and understood how the losses are worked out. I am, however, confused about the below. Please advise:
1) Are we allowed to claim against the total income (and chargeable gains) as seen for other sections first, and only then carry back the trading losses up to 4 years to set off against trading profits? or
2) Should we first claim special terminal loss relief first, and then only set off against total income (and chargeable gains) if there are extra losses remaining after the special relief claim? Are there any rules surrounding the order of the relief to be claimed in the terminal year?
Thank you
If you want to ask the tutor directly, kindly start a thread in Ask the Tutor Forums. This forum is for students to help each other.
For your question, TLR is an additional relief over normal reliefs for trading losses. You should always use current year loss reliefs first and then go for additional reliefs like TLR. So that maximum amount of total income in current year is utilised before carrying any extra loss back.
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