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Posted Thu, 27 Apr 2023 14:13:56 GMT by hannah
I'm completing my self assessment for the first year of my small business. I have made a loss. In HS227 Losses (2023) it says: The amount of loss relief you claim against income or capital gains may be restricted or limited for example if you: worked for less than 10 hours a week on average on commercial activities of the trade. I worked for less than 10 hours a week on average - how do I find out if loss relief is restricted? Thanks
Posted Thu, 04 May 2023 16:24:05 GMT by HMRC Admin 25
Hi hannah,
The restricted relief applies when you are setting it against your other income or gains and not to be used against the same trade.
If you are using the cash basis method, you need to carry forward your losses to be set against future profits from the same trade.
If the losses in question are over £50,000 this is when the restriction comes in.
Please see:
Limit on Income Tax reliefs (Self Assessment helpsheet HS204)

Thank you. 


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