Illustration - trade loss against gains
You'll learn how to claim trade loss relief against both income and chargeable gains, and how to choose the most tax-efficient year to make your claim.
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In this lesson
- 0:00 Setting up trade loss relief illustration
- 1:00 Understanding loss relief options available
- 1:52 Offsetting losses against income and gains
- 2:30 Calculating remaining loss to carry forward
About this lesson
This illustration walks you through a worked example showing when it's better to offset losses in the prior year rather than the current year, and the important rules about mixing income and gains relief. Essential for understanding loss relief strategy in the TX paper, this technique helps you minimise a client's overall tax liability when they've made significant trading losses.
Duration: 3m
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