Business Tax - How to Deal with Losses (tips please!)

Morpheus1980

Hey everyone, long time since I've been on here. It's all changed, couldn't even figure out how to log-in!

Anyway, I've got a Business Tax exam on Thursday and I'm just wondering if anyone has any tips on how to remember how losses (trading, capital and property) are treated, for both individuals and companies (in terms of carrying them back or forwards)? I'm comfortable with pretty much every other aspect of the curriculum, but this is really foxing me and it doesn't seem to be sinking in. Help! x

Morpheus1980

It has finally sunk in!

Companies: trading losses - current year, carry back and carry forward. Or current year and carry forward. Or carry forward. Once carried forward, loss cannot be carried back.
Capital losses - relieved when the next capital gain occurs - cannot be carried back
Property losses - relieved when they occur, and as they are mandatory, are dealt with before trading losses (if there are insufficient gains to set off against).

Individuals: trading losses can be set off against trading profits and income either in current year then previous year, or previous year and current year. They can be set off against trading profits only in future years.


Now to quickly go through entrepreneur's/rollover/gift relief and tax payment dates...