Relief for current year trading losses

By Tolley

The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Relief for current year trading losses
  • Considerations
  • Cap on unlimited income tax reliefs
  • Accelerate the relief

Relief for trading losses for sole traders is discussed in detail in the following guidance notes:

  • Losses in opening years of trade
  • Losses incurred by continuing trades
  • Losses in year of cessation of trade

The main factors which should be taken into account in loss relief planning are as follows:

  • marginal rate of tax ― for maximum savings, losses should be offset against income taxed at higher marginal rates of tax in priority

More on Income tax losses: