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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My client prepares annual accounts to 31 March. He is one of

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My client prepares annual accounts to 31 March. He is one of three partners.
The business ceased trading on 30 November 2014.
Accounts 1/4/2014 to 30/11/2014 showed a loss. No other income. May the loss be set against a capital gain 2014/2015. Will I need to revise the penultimate year of assessment
2013/14 in this case.?
Advice much appreciated

There are several options as to the use of losses which occur in the final period of trading which you can read about here. This is the 2013/14 helpsheet so add a year. It is better than the one for 2014/15 which is here. Read about terminal loss relief here or here (page 13 onwards).

If the loss is more than other income in 2014/15 or there is no other income in 2014/15, the balance of the loss or the loss itself in the case of no other income can be offset against capital gains for 2014/15.

The 2013/14 year will not need to be revised even if you choose to claim tax relief against income and capital gains for that year. In that case, the tax relief is worked out against income and gains for 2013/14 and the resulting tax overpayment is given as a credit in the self-assessment tax return of the partner for 2014/15.

I hope this helps but let me know if you have any further questions.
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