Taxpert Trading Loss Analyser 2023

Product overview

Working out how best to use trading losses against other taxable income was challenging enough even before the March 2021 Budget temporary extension that allows trading losses of 2020-21 and 2021-22 to be set against trading profits of the previous three tax years. Now the number of loss claim combinations is simply mind-boggling. The Taxpert Trading Loss Analyser App is the only software available that enables you quickly and accurately to identify and review all of the various tax loss strategies.

Users simply enter the trading profit or loss and the other taxable income amounts for the tax years 2017-18 through 2022-23 and at the click of a button you will see the resultant income tax and class 4 nic liabilities for each of those tax years.

You can also enter anticipated rates at which any carried forward losses might be relieved for tax and class 4 so that your advice can factor in the possible benefit of carrying forward rather than making immediate claims.

The functionality and power of the Taxpert Trading Loss Analyser App includes:

• Pre-set calculations for the twelve most likely combinations of loss claims under s64 ITA 2007 and Sch2 FA 2021;
• Pre-set calculation if all losses carried forward;
• Ability to enter your own combination of claims via the “DIY claims” worksheet;
• Automated recalculation of tax and class 4 for each of the combinations for each of the tax years 2017-18 to 2022-23;
• Identification of additional losses carried forward for class 4 purposes;
• Estimate of tax and class 4 value of losses carried forward;
• Automated application of the restrictions on s64 sideways relief (greater of £50,000 or 25% adjusted net income);
• Automated application of restriction on Sch2 FA 2021 extended carry back (£2,000,000 limit for each of 2020-21 and 2021-22);
• Effect of making Sch2 FA 2021 claims for 2021-22 before claims for 2020-21;
• Select if Scottish and the Scottish rates are applied to work out the tax for each year;
• Select if state pension age reached and the class 4 calculations disappear.

The Taxpert Trading Loss Analyser does not reflect the impact of loss claims on the high income child benefit charge; pension contribution relief; or gift aid relief. For these you need to combine the Taxpert Trading Loss Analyser with our best-selling Taxpert Tax Calculator.