Can losses not claimed against previous profits be carried forward to later years?
My client has been a member of a limited liability partnership for about two years. The partnership which is engaged in a trading activity in the UK has incurred losses in 2014-15 and 2015-16.
These losses should have been available to my client to carry forward against future profits of the same trade – the client has no other income leaving sideways relief off the table.
I say ‘should have been’ because for whatever reason the partnership returns were not made available at the time the personal tax returns were prepared. Consequently no partnership losses were included in the client’s return for the relevant years.
I am now working on the client’s 2016-17 return and have finally received the partnership returns not only for 2016-17 but also for 2014-15 and 2015-16.
There are trading profits in 2016-17; however as a result of...
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