Critically evaluate the different loss relief options available for sole trader and business partners based on Income Tax Act 2007(ITA2007) and Taxation of Capital Gains Act 1992 (TCGA1992).

There are different ways in which trading losses of sole traders and trading partners can be relieved. Some loss relief options give a higher rate of relief by carrying losses forward, but it may be important to some taxpayers to claim relief now rather than later due to cash flow implications.

In order to give proper advice and recommendations on a particular course of action it is important to understand the key features of the different loss relief options available based on Income Tax Act 2007(ITA 2007) and Taxation of Capital Gains Act 1992(TCGA1992). This could help to ensure the optimum use of trading losses.

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Part A) (There is a word limit of 800)

1- Critically evaluate the different loss relief options available for sole trader and business partners based on Income Tax Act 2007(ITA2007) and Taxation of Capital Gains Act 1992 (TCGA1992).

2- Critically evaluate the recent restriction applied on relief for trading losses based on Finance Act 2013.