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Hi could you please help me with this doubt.
Under trading loss relief ‘the max restriction of 50000 or 25% of other income which is greater’
When do you actually use this restriction ? I saw some places this restriction is used and some not.
How do I know when to use this ? Should I compare with the trading loss if it is bigger than 50000 or compare with other income if it is bigger than 50000 and then use it ?
really confused
would appreciate your prompt response
I’m just a learner, so I’m not too sure, but this is my understanding.
First is the limit, it’s only matter if your income is actually over 50,000/25%, which is 200,000. Then the 50k limit will change.
It’s the maximum of trade loss relief can be set against your total general income (excluding your trading income), which will include your interest income, property income…
So if you have property income of £70,000 (previous year) and trade loss carried back of (£100,000), some trading income (previous year) of ie £10,000, the maximum of trade loss could be set against your property income is £50,000, not the whole £70,000.
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