Offseting Trading Losses against schedule A? help

kachaloo Registered Posts: 4 New contributor 🐸
Hello there

I have asked about this by a friend of mine.

A private ltd company has trading losses b/f from last year of £50,000 on cessation of retail business.

This year the company has only "Rental Income" of £70,000 from commercial properties (this is the main business now).

Can the company offset b/f £50,000 of trading losses against rental income of £70,000 this year?



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

    If I can remember correctly, you can only carry back a terminal loss (S388 from memory). You can carry this back against the previous 5 years profits, but it cannot be carried forward - ie it dies with the business.

    Someone else may well correct me - this is only from exams a wee few years ago now, and something that I have only ever come across once in real life!

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