Dealing with Losses

System
System Posts: 100,534 🤖 Admin 🤖
edited 12:08PM in AAT member discussion
I'm in a right pickle here!

I'm doing the accounts/tax returns for a partnership that started trading in May 2003 and one partner left in Aug 2004. No returns have been submitted yet (and how oh how did I end up getting this job?!).

I've drawn up accounts to March 2004 and then the final 5 months to cessation. A loss of £10k was made to March 04, and a loss of £5k to cessation.

I've just realised that they're way past the deadline for claiming s380 or s381 loss relief on the 2003/04 loss.

The man who's continued trading will be alright carrying his losses forward, but the other man was employed before & after - does anyone know if there's any way he can get relief for his share of the £10k loss?

I was considering changing the accounts year end to 30 April, but I don't think that that will help the situation.

Please help!
Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Dealing with Losses

    Hi Jodie

    Can't you do S381 relief - which can go back three years.

    Otherwise why not go for S388 terminal loss relief.

    Hope this helps.

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Dealing with Losses

    thanks - unfortunatly it's too late to claim s381 relief for the 2003/04 loss (claims needed to be made by 31 Jan 2006) and terminal loss can only be set against trading profits, and there weren't any! so he's lost out, but I guess that's what happens when you don't bother sorting out your finances!

    I ended up calling the croner helpline & spoke to a lovely lady who confirmed that there's nothing I can do about it. I'm just glad I've got it finished!

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