Offset Case I Loss or Case V Rental Loss Against Schedule E Employment Income

[A2fan]

Few questions that I would welcome clarification on if somebody can help

As far as I'm aware:
A Case I Loss from trade/farming can be offset against Schedule E Income whereas a Case V Rental Loss fom renting out the farm can only be offset against other Case V Rental Income.

Is this correct?

Also could a tax loss (which could subsequently be offset by Schedule E income) be created by setting up a PRSA and paying money from Case I source into it? ie in order to recover tax paid on Schedule E income?

Any info appreciated
Thanks in advance

 

[Joe_90]

Case I , Case V and Schedule E, you have done your research.

Yes Case V losses can only be offset against other Case V profits or carried forward.
Don't get confused a Case I loss is the loss on a trade after capital allowances. A pension contribution is a seperate issue.

You can set up a PRSA based on your Schedule E. The max of you pension is based on your earnings. So if you have a loss you have no income to base your pension on.