The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
When a company incurs a trading loss on or after 1 April 2017 which has not been relieved against current or preceding year profits and also has not been surrendered as group relief, it can claim to carry the loss (or the balance remaining after such claims) forward to the next accounting period for relief against total profits.
For losses arising before 1 April 2017, the amount of any trading loss which was not relieved against current or prior year profits is carried forward for offset against future profits arising from the same trade. This is not a claim and the loss offset is automatic. Losses carried forward will be offset against all available profits from the same trade in perpetuity until the loss is exhausted.
For further details, see the Trading losses carried forward guidance note.
In addition, subject to a de minimis of £5m, carried-forward losses are restricted to a set-off, which is limited to 50% of profits, see the Carried-forward losses restriction guidance note for details.
There are anti-avoidance provisions which prevent trading loss relief in
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Taxpayers may wish to consider basic tax planning arrangements in use the capital gains tax annual exemption. This type of tax planning is often reviewed at the end of the tax year.This guidance note first looks at the annual exemption in detail and then various tax planning strategies that might be
What is an accumulation and maintenance trust?An accumulation and maintenance (A&M) trust is a particular type of settlement intended to make provisions for children and young adults up to the age of 25. The key feature is that trustees are given discretion over how to use the income for the benefit
Duty to prepare estate accountsThe Personal Representatives' (PRs) legal obligation to prepare accounts is set out in Section 25 of the Administration of Estates Act 1925. Their prescribed duties include:when required to do so by the Court, exhibit on oath in the Court a full inventory of the estate
Universal credit is a non-taxable benefit that is administered by the Department of Work and Pensions (DWP) and is available throughout the UK. It is available to individuals on low incomes whether they are in work, unemployed or self-employed. It is designed as a replacement for several ‘legacy