I have been a member of a Film Partnership since 2000 (investigated…

Question

I have been a member of a Film Partnership since 2000 (investigated and approved
by HMRC) and I have 4 more years remaining. I have made substantial losses as a
self employed trader in the last tax year. Can I use this loss to pay off the
remaining years early?

TaxVince · Accepted Answer

TaxVince :

Hi there

TaxVince :

Thanks for the question.

TaxVince :

Is this to do with prior years returns? Didn't you complete the returns then?The
default position is that the loss will be carried forward (while you are still
carrying on the same trade) and set against the profits of subsequent years.

You can however instead of carrying a trading loss forward, one can claim for
the trading loss to be offset against profits if during the two fiscal years
2008/09 and 2009/10, you made a trading loss during these period as noted HERE.
[http://www.truemanbrown.co.uk/index.php?option=com_content&view=article&id=223:temporary-extension-of-trading-loss-carry-back&catid=46:blog&Itemid=185]

IF you are trading in a Ltd you can carry back the preceding 12-month period
(not accounting period). But you can only do this if your company or
organization was carrying on the same trade at some point in the accounting
period or periods that fall in the preceding 12-month period.Unfortunately you
cant carry back much further.

HMRC recommends you write a letter telling them the name of your trade, how much
the loss is and for what period, and say
how you want the relief to be given if not clear. You can also contact HMRC on
0845 9000 444. You can also see further details HERE
[http://www.hmrc.gov.uk/helpsheets/hs227.pdf].

Hope this helps. If in doubt please drop a message. If ok, please rate the
question before you go.

Regards

TaxVince :

Hi Im just following up on the answer. COULD YOU PLEASE RATE OK OR BETTER BEFORE
YOU GO. I would greatly appreciate a good rating as that's what allows me to be
paid for my time and this is what i do for a living./

Customer:

Hi sorry for the delay in responding I have been away.

Customer:

Your answer is not relevant. Maybe I havent explained things properly. In
2011/12 I made a big loss whilst trading for 6 months as a sole trader (I am not
carrying on the same business). The Film partnership I am involved with is
seperate and I have a taxable liability that will arising from it for each of
the NEXT four years (12/13, 13/14, 14/15 and 15,16). I want to know if I can
offset (if thats the right term) the large loss I made in 11/12 against these
FUTURE years taxable profits by realising them early. Is that possible. The
company that run the Film parnership have told me they can't accept payments in
advance but didn't know if there was "Another way" which is what I am trying to
find out.

Customer:

I think I need help from someone who knows about dealing with profits made by
Film Partnerships

Customer:

Thank you. The info in helpsheet 227 seems to suggests that as a soul trader I
can claim relief for the loss made in 2011/12 from income/capital gains profits
in 08/09, 09/10 and 10/11

Customer:

Relief calculated by reference to income or gains of earlier years

You can claim to have the loss in 2011–12 relieved by reference to:

• income or gains in 2010–11

• income in up to three years before 2011–12.

These claims all relate to 2011–12 even though they are calculated by

reference to your income or capital gains and circumstances of the

earlier years.

You can claim relief for the loss to be calculated by reference to your income

for 2010–11. If the allowable loss is more than your 2010–11 income, you

can, if you want, claim relief for the balance of the loss to be calculated by

reference to your capital gains for 2010–11.

If your trade was set up and commenced trading on or after 6 April 2008,

you can claim early trade losses relief calculated by reference to your income

(but not capital gains) of the three years 2008–09 to 2010–11. The loss is

first relieved by reference to your 2008–09 income. If there is any balance of

loss left, this is relieved by reference to your 2009–10 income. Finally, any

remainder is relieved by reference to your 2010–11 income.

The time limit for claims is 31 January 2014.

Customer:

Would that seem right to you?

Customer:

Thanks for your hepl

Customer:

Kevin

I have been a member of a Film Partnership since 2000 (investigated…

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