.png)
.png)
When to set off trading losses sideways or backwards, and when to carry forward
KEY POINTS
- Sideways losses can be used in the current and preceding tax years.
- Beware of wasting personal allowances when allocating loss relief.
- Do not overlook relief for Class 4 National Insurance contribution purposes.
- Consider the applicable marginal tax liability.
- Consider whether the loss reliefs will be capped.
- Income losses can sometimes be set against capital gains.
- Loss relief may also be carried forward to succeeding corporate trades.
I recently experienced a moment’s confusion regarding the treatment of carried forward trading losses. I had initially thought that my software had a glitch but a quick check of the rules confirmed that the automatic calculation had indeed treated the loss correctly.
It did serve to remind me that we can sometimes...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
