help! self assessment losses query

Model500 Registered Posts: 43 Regular contributor ⭐
i am just filing a tax return for a member of my family who has losses brought forward from earlier years and has incurred losses in the current year.

could someone please clarify that I am completing form SA103 correctly:

Box 3.87 - Loss to carry forward - I am stating loss in current year only.

Box 3.88 - Loss brought forward - I am stating previous years losses only.

while I am on this subject, is there a limit on how many years you can carry forward losses?

a thousand thank you's to whoever responds


  • claudialowe
    claudialowe Registered Posts: 275 Dedicated contributor 🦉
    Hi there

    Yes - you are correct about brought forward and carried forward losses.

    As far as I am aware there is no time limit for losses, but if they carry on year after year, HMRC might have the opinion that it is not a trade but a hobby being carried on.

  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    Just to add..

    Trading losses can be carried forward until a profit is made from the same trade at which point those losses must be utilised as fully as they can.

    If trading ceases and there is no other income for the losses to be utilised against then they will be lost, unless the business is transferred to a company in which case the losses can be utilised against future salary or dividends received from the company.
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