Elect in good time

Events don’t always turn out as expected. For example, you may need to wait for a later profit or loss to arise before you can judge whether it’s right to elect to change the tax treatment of an earlier transaction.

This is why the law allows you extra time, after you have submitted your tax return, to submit a tax election or claim. The elections you may need to make by 31 January 2022 for the 2019/20 tax year include:

  • to set trading losses against your other income
  • to average the profits made from farming, or as an author or artist
  • to treat a property as continuing to qualify as Furnished Holiday Letting if it qualified as such in 2018/19, but otherwise would not in 2019/20

You need to wait for a certificate to arrive before making a claim for your investment under the Venture Capital schemes – EIS, SEIS or SITR – so the claims period for those schemes is five years after the tax return submission date.

Corporate tax claims generally need to be made within two years of the end of the accounting period in which the transaction occurred.

We can help you check what claims or elections you need to make.

Action Point!
Have you made all the necessary tax claims?