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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 gains
Is 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.
The chargeable gains are irrelevant in computing the maximum loss to set against the total income of the tax year
Oh, I see, I thought the restriction was on both general income and capital gains. Thank you very much for your reply.