One of my key catchphrases I use to help my Advanced Tax students remember is ‘If you don’t use it, you lose it like your muscles!’

When giving your clients tax advice, it is important they do not waste their exemptions.
When self-employed individuals claim loss relief, it cannot be restricted so you end up wasting the personal allowance of £12,500.
If this is the case, it is not beneficial to claim loss relief.

HMRC always allow double tax relief to be claimed even if no double tax treaty exists. Double tax relief is the lower of UK and overseas tax.
When giving group relief, if you reduce the claimant company’s tax to less than the DTR, then the unused DTR is lost.
If this is the case, it is beneficial to restrict group relief.

When single companies claim loss relief in the current and previous years, the claim against total income cannot be restricted so you end up wasting the QCDs.
If this is the case, it is not beneficial to claim loss relief.

For inheritance tax purposes, the residence nil rate band is available if the main residence is left in the death estate to a direct descendant.
If you make a PET of the main residence, then the RNRB will be lost.
If this is the case, it is not beneficial to make a lifetime gift of the main residence.

So, remember -if you don’t use it, you lose it -like your muscles!
If you enjoy the fun way I teach, I recommend you get my Advanced Tax Condensed notes which allow you to memorise everything quickly.