Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Relief against general income and capital gains: Restrictions
- This topic has 2 replies, 2 voices, and was last updated 6 years ago by thnguyen.
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- November 12, 2018 at 4:36 pm #484605
For the rule relief is capped at “the higher of £50,000 or 25% of your total income”, does this rule apply to total income and chargeable gains separatedly?
So for example, we have
a trade loss of 80,000 (year 17/18)
A trade income of 21,000 (in 16/17)
An interest pmt of 52,000 (in 16/17)And chargeable gain of 53,000 (in 16/17)
We will have the total relief as
100% of trading income relieved
[+]
Higher of 50k or 25% total income___general income
[+]
Higher of 50k or 25% total income___chargeable gainsIs this right? Or the rule is applied to the total of taxable income and chargeable gains together, not separately?
If anyone look for the original version, it’s the revision exercise number 118, Kaplan revision kit.
November 16, 2018 at 5:43 am #484970The chargeable gains are irrelevant in computing the maximum loss to set against the total income of the tax year
November 16, 2018 at 7:28 pm #485033Oh, I see, I thought the restriction was on both general income and capital gains. Thank you very much for your reply.
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