john banks

My wife has been unemployed since April, and is starting up a business soon. She has received some bank interest but this in addition to six months of dole has been below her personal allowance for this tax year.

In favour of starting trading at the beginning of the next tax year there would be no question of losing out of this year's personal allowance by declaring losses against it.

In favour of starting trading before the end of this tax year is that she can write down 100% of her machine cost immediately (producing an even bigger loss though which would not use any personal allowance at all) and we don't know if this will be possible in the 2012/13 tax year.

Questions:

1. Can she elect to carry over losses to the subsequent tax years to allow her to use as much of her personal allowance as possible?

2. Anyone know if the 100% write down allowance on qualifying machinery will continue in 2012/13?

Chip

I too started my own Limited Co a few months ago and have done everything through an accountant which has saved me a lot of money and made it a lot easier to understand it all.

Dunk

iTrader: (1)

It's a long time since I took my exams, and I'm hopelessly out of touch on tax, but you used to restrict the first year WDA to then c/fwd into the next year to avoid giving it away.

D

jinkus

answers are yes to both