- Original Poster
- #1
Quick question that I'm having difficulties with.
A Partner has suffered his share of Partnership losses over the past 3 years 08/09, 09/10, 10/11 (which has never been offset). Partner left Partnership during the 10/11 Tax year (Partnership not trading anymore). During the 09/10 Tax year he registered as Self Employed and carried the business on by himself under his own name (Partnership was under a different name). The Partnership was still running as they couldn't sell the property they had built but the Partnership was not actively trading. During the 10/11 Tax year he earned sizeable profits (SE) and paid a large chunk of Tax (none "on account" as he was only Self Employed for 1 year). At the start of the 10/11 Tax year he started a Limit Company (with the same name) and was the sole Director (which is probably irrelevant but I'll throw that info in anyway). Over the past 3 years he has had Property Income, Dividends and Bank Interest alongside his building work.
Question 1 (the main question):
Can his share of the C/F Partnership Losses be off-set against the Self Employment Profits from the 09/10 Tax year (as for the 10/11 Tax Year he was on a Directors wage up to the tax free allowance and Dividends). The main reason why I can't find the answer is because HS227 states:
"you can claim relief against profits from
the same trade"
Does this mean Self Employed ---> Self Employed or does it just mean he must still be a builder? He is still a builder doing the same work (so same trade) but he isn't in a Partnership he became Self Employed and he isn't using the same trading name.
Question 2:
Are we now talking about Terminal Losses as he made a Loss in the final year? I've read up on HS222 but I'm going round in circles.
I haven't had to deal with Losses before so this is a learning curve for me. ADL have said they have no clue, it has taken 3 days to get through to a technician who says they don't have the knowledge to give a definite Yes or No on the subject as it isn't straight forward losses and as we are talking potentially about a large refund they would prefer I have an Inspector on Call Back. Expecting call within next 24 - 48 hours but would quite like to go into the conversation with either bullets or blanks in my guns, either or, I just don't want to go into the conversation unloaded.
Kind Regards
Xzol
A Partner has suffered his share of Partnership losses over the past 3 years 08/09, 09/10, 10/11 (which has never been offset). Partner left Partnership during the 10/11 Tax year (Partnership not trading anymore). During the 09/10 Tax year he registered as Self Employed and carried the business on by himself under his own name (Partnership was under a different name). The Partnership was still running as they couldn't sell the property they had built but the Partnership was not actively trading. During the 10/11 Tax year he earned sizeable profits (SE) and paid a large chunk of Tax (none "on account" as he was only Self Employed for 1 year). At the start of the 10/11 Tax year he started a Limit Company (with the same name) and was the sole Director (which is probably irrelevant but I'll throw that info in anyway). Over the past 3 years he has had Property Income, Dividends and Bank Interest alongside his building work.
Question 1 (the main question):
Can his share of the C/F Partnership Losses be off-set against the Self Employment Profits from the 09/10 Tax year (as for the 10/11 Tax Year he was on a Directors wage up to the tax free allowance and Dividends). The main reason why I can't find the answer is because HS227 states:
"you can claim relief against profits from
the same trade"
Does this mean Self Employed ---> Self Employed or does it just mean he must still be a builder? He is still a builder doing the same work (so same trade) but he isn't in a Partnership he became Self Employed and he isn't using the same trading name.
Question 2:
Are we now talking about Terminal Losses as he made a Loss in the final year? I've read up on HS222 but I'm going round in circles.
I haven't had to deal with Losses before so this is a learning curve for me. ADL have said they have no clue, it has taken 3 days to get through to a technician who says they don't have the knowledge to give a definite Yes or No on the subject as it isn't straight forward losses and as we are talking potentially about a large refund they would prefer I have an Inspector on Call Back. Expecting call within next 24 - 48 hours but would quite like to go into the conversation with either bullets or blanks in my guns, either or, I just don't want to go into the conversation unloaded.
Kind Regards
Xzol
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