Sideways loss relief

George

I have been passed a new client's 2010 SA100, where a Section 64 loss claim was set against pension income received in the year. However, only a small amount of the 2019/2010 trading loss was claimed, in order to utilise the full personal allowance. There is no loss to be carried back. Can you confirm, as I understand it, that this is incorrect and that it is an 'all or nothing claim', and therefore carrying forward the remainder of the loss, under Section 83, is also incorrect?

Many thanks!

T.C.

All loss has to be used against the current income for the year, ie £10000 income, £8000 total loss, leaves just £2000 taxable income, or £10000 income, £11000 loss, leaves £1000 loss to carry forward (or back). That make sense?

George

Exactly. As I thought! Thanks, TC!