Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: Could HMRC challenge structure to set off loss?

19 February 2024
Issue: 4925 / Categories: Forum & Feedback , Business
Loss relief quandary

My client is a farmer. I am comfortable that he is carrying on the farming business on a commercial basis with a view to profit but the business is making losses. He has made losses in the last five years which have been or will be set against other income and he is now in the sixth year. If he makes a loss in this year as well he will not be able to set it against other income.

Things are a bit more marginal this year. If he makes a profit then that will reset the clock for loss set off if he makes losses again in future years. He has suggested to me that he can declare a small profit if he simply doesn’t claim a deduction for some of the farm expenses even though they are undoubtedly legitimate trading deductions. I have said to...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon