B8.204 Established trade—carry forward relief for trade losses
If a loss is not relieved in the current or previous year against general income, it is possible to make a claim to have the unrelieved loss carried forward, and deducted from the profits of the same trade for subsequent tax years1.
Profits of the 'same trade' includes interest and dividends that arise in the tax year in question, that would have been taken into account as trading receipts but for the fact that they are taxed under other provisions of the Taxes Acts2.
Losses for carry forward will also include interest on a 'qualifying loan' (E1.820) if the interest cannot be offset against total income because there is insufficient income in the tax year. This treatment only applies if the interest in an expense made wholly and exclusively for the purposes of a trade carried on wholly or partly in the UK3.
It is important to note that carry-forward relief is available only where the business in which profits are made is