BIM75240 - Trade losses- claims to relief: Title to relief
Executors, administrators or trustees
A claim to loss relief, other than under ITA07/S72 (see BIM75400 onwards), may be admitted in respect of a business carried on by executors, administrators or trustees.
Employees
Relief for losses in an employment or office is under ITA07/S128 (Pt.4, Ch.5) and not under the trade loss relief provisions in ITA07/S72 (Pt.4, Ch.2). However, an employee’s title to the relief should not be admitted unless the loss arises directly from the conditions of the employment (for example, a departmental manager remunerated by a percentage of the profits of their department and responsible for a corresponding percentage of any losses, or a commercial traveller responsible for bad debts arising from orders obtained by him or her).
A deduction from earnings for expenses cannot exceed the earnings from which it is deductible. There is no such limitation in the case of capital allowances because relief is given via CAA01 and not via the legislation for expenses. Information on claims by employees for a loss generated by capital allowances is at EIM36890
