Loss relief restriction on new businesses
March 26th, 2009
Up to last April it was possible to offset losses you made in your business against other income, e.g. salary and rental income
This relief has been restricted as a result of FA 2008 to losses of not more than £25,000 per year or to losses incurred in businesses in which you work at least 10 hours per week. That is, large losses incurred in part-time businesses can no longer be offset against other income. Therefore if you are likely to fall into this category record the time spent on your business, including all the administration stuff, emails, phone calls, doing the books etc. - it all adds up and is useful ammunition if the taxman ever asks.
The content of this article is for general information only. It should not be relied on and action which could affect your business or personal circumstances should not be taken without appropriate professional advice.
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