Case 1 - dealing in residential land

Legend100

To Mods: (i know this sounds like a property question but it is a general query as i can't find the answer anywhere and i know someone like dbran or mr incognito might have the answer )

Since FA 2009 i know the 20% rate for dealing in residential land has been abolished and if there was a loss in 2008 it is carried at a 20% tax credit.

My question is what happens if there is a loss in dealing in land in 2009. Can you offset it against total income or is it restricted to losses to that trade as a S396 going forward.

i see that the ITI ran a course on this very topic and it was in there monthly magazine towards the summer of 2009 but since i'm only a student, i can't access the older stuff

i was thinking since the downturn, land values will have dropped dramatically for many people and this will become important this year. I've tried to read the legislation but i'm still confused. Tried Revenue.....of course they didn't know what i was talking about :mad:

Teej

Students can access the content of past issues of the Tax Review indirectly through the search function on TaxFind-just cannot go directly for some reason

Essentially the restrictions only apply if the gains would have been entitled to relief

Mr. Incognito

Back to first principles.

It's a case 1 trade loss. Regardless of the rate Case 1 trade losses can only be offset against...............................

Case 1 trade losses. Current year first, then carry forward any unused losses.

That make it easier?

The update in the tax review was on the transitional measures. You don't really need to be going into that level of detail.