SACM11015 - Claims involving two or more years: how is the claim quantified
Paragraph 2(4) Schedule 1B sets out how the claim is to be quantified. It reads
(4) Subject to sub-paragraph (5) below, the claim shall be for an amount equal to the difference between-
(a) the amount in which the person is chargeable to tax for the earlier year (바카라 사이트渁mount A바카라 사이트�); and
(b) the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim in relation to that year (바카라 사이트渁mount B바카라 사이트�).
The claim is quantified in terms of the tax difference in 바카라 사이트渢he earlier year바카라 사이트�. The 바카라 사이트渢ax difference바카라 사이트� is the tax that would not have been due in 바카라 사이트渢he earlier year바카라 사이트� if the claim could be and had been given effect to in that 바카라 사이트渆arlier year바카라 사이트�.
Example 1
Casey declared profits of 拢25,000 in her self-assessment return for 2018-19. Casey is now completing her tax return for 2019-20 and has made a loss of 拢10,000. Casey wishes to carry this back to 2018-19.
Casey바카라 사이트檚 claim is quantified as follows:
2018-19 original tax calculation (바카라 사이트渁mount A바카라 사이트�)
Profits 拢25,000
Less Personal Allowance (拢12,500)
拢12,500
Tax at 20% 拢2,500
2018-19 tax calculation after effect is given to the claim (바카라 사이트渁mount B바카라 사이트�)
Profits 拢25,000
Less Personal Allowance (拢12,500)
Less Loss from 2019-20 (拢10,000)
拢2,500
Tax at 20% 拢500
Casey바카라 사이트檚 claim is calculated as the difference between 바카라 사이트渁mount A바카라 사이트� (拢2,500) and 바카라 사이트渁mount B바카라 사이트� (拢500).
Casey바카라 사이트檚 claim is, therefore, 拢2,000.
The claim is only quantified by reference to the earlier year. It remains a claim for the later year as that is the year in which the event giving rise to the claim occurred. For example, the year in which the loss arose.