Commentary

B8.208 Cessation of trade—terminal loss relief for trade losses

Business tax
Business tax | Commentary

B8.208 Cessation of trade—terminal loss relief for trade losses

Business tax | Commentary

B8.208 Cessation of trade—terminal loss relief for trade losses

Where a person permanently ceases (B1.615) to carry on a trade in a tax year (the final tax year) a claim may be made to set any terminal loss against profits from the trade in the final tax year or the preceding three tax years1.

The relief is set off as far as possible against the profits of a later year rather than an earlier year, starting with the profits of trade of the final year2. If the loss cannot be fully used under the terminal trade loss provisions, any remaining loss

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