Trusts

Where a trust has incurred a trade loss of around £65,000, is it restricted in claiming loss relief against other income to the £50,000 cap applicable to individuals? Different sections of HMRC Business Income Manual make reference to a "person (individual, partner or trustee)" in BIM85015, an "individual" in BIM85703 and a "person (sole trader, partner, trustee)" in BIM85761.

Hi MRTax,


Where a trust has incurred a trade loss of around £65,000, is it restricted in claiming loss relief against other income to the £50,000 cap applicable to individuals
Different sections of HMRC Business Income Manual make reference to a "person (individual, partner or trustee)" in BIM85015 - Trade losses - types of relief: relief against general income, an "individual" in BIM85703 - Trade losses - restriction of relief: interaction with the income tax reliefs cap and a "person (sole trader, partner, trustee)" in BIM85761 - restriction of relief: no sideways relief for tax-generated losses.

Thank you.