Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚

Offseting Trading Losses against schedule A? help

kachalookachaloo Just JoinedRegistered Posts: 4
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?



  • claudialoweclaudialowe Trusted Regular Registered Posts: 275
    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!

Sign In or Register to comment.