Offsetting loss against other income
LaurenS
Registered Posts: 8
A sole trader client uses cash basis accounting and has made a loss in the first year. Client is also employed and is a higher rate tax payer. Can the loss be taken into account against the income from employment or should the loss be carried forward against potential future profits?
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Comments
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I believe on the cash basis you can only carry forward against future trading losses, you can't apply against other income.1
