Specialist Tax Regulatory Materials
In the ever-fast-moving world of tax announcements and developments, this news pulls together some of the key changes announced this week. Our commentary will be updated in due course to reflect these latest developments.
Jurisdiction(s): England, Northern Ireland, Scotland and Wales
Income tax losses 鈥� overviewIncome tax losses can arise due to a number of reasons, but not all losses can be relieved against total income and some losses can only be set against certain types of component income. The table below is a summary of the main reliefs for income tax losses.Summary of
Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of 鈥榟obby farming rules鈥�, which historically have stated that a profit must be made every six years. This is known as 鈥榯he five-year rule鈥�, in that there can be five years of losses but there must be a profit
Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the
