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Posted Wed, 01 Feb 2023 09:29:10 GMT by OliverHH Houlston
Hello Can I check a scenario please as I’m reading conflicting advice. Income £400k but has an unquoted share loss (not EIS) of £400k in 22/23. So capped relief in 22/23 of £100k BUT can they also carry loss back to 21/22 and claim £50k or 25% in 21/22 and would the 25% be calculated on £300k (£400k loss less £100k claimed in 22/23). Any help would be appreciated.
Posted Tue, 07 Feb 2023 13:30:19 GMT by HMRC Admin 32

Losses cannot be carried back in almost all circumstances. Exceptions tend to be where businesses have recently commencded trading (early trade losses), ceased trading (terminal losses) or an individual has died.  

Have a look at the helpsheet HS227.

HS227 Losses (2022)

Thank you.
Posted Tue, 07 Feb 2023 16:39:05 GMT by OliverHH Houlston
Sorry but the helpsheet is on a different subject. I am talking about an unquoted share loss when the shares were subscribed for. Can you please confirm such a loss can be carried back Thank you
Posted Mon, 13 Feb 2023 15:09:49 GMT by HMRC Admin 32

CG15800 advises that there are some exceptions to the general rule that losses cannot be carried back.

These include when there are losses of the tax year in which individual dies that cannot be deducted from gains of the year (TCGA92/S62(2)), see CG30430 onwards.

A terminal loss claimed on the termination or expiry of a mineral lease may be carried back and deducted from certain chargeable gains accruing in earlier years (TCGA92/S202(7)), see CG71751

Subject to conditions, an election may be made for a loss accruing on a disposal of certain rights to deferred unascertainable consideration to be deducted from chargeable gains accruing in previous years (TCGA92/S279A(1)), see CG15080+.

CG15800 - Losses: allowable losses

Based on this guidance, you are unable to carry back the losses.

Thank you.
Posted Mon, 13 Feb 2023 16:48:22 GMT by OliverHH Houlston
I'm very worried by your advice. I have read HS286 and HS297 and it implies the loss can 100% be offset against income. Am I reading this wrong or are you wrong ?? A very worried customer
Posted Wed, 15 Feb 2023 14:35:18 GMT by HMRC Admin 32

Details on the limits that apply to loss relief is at:

HS204 Limit on Income Tax reliefs (2022)

Thank you.

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