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Losses brought forward

My client has trade losses brought forward of £30,562. Curreny year profits are £23,407. My tax software (BTC) is forcing me to offset the whole £23,407 of brought forward losses against this years profit. Is that correct? can I not restrict the loss off set so as not to "waste" the personal allowance of this year?


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The tax software is correct. 

The tax software is correct.  The loss can not be restricted to use the personal allowance.

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software is correct

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Tax planning - Capital Allowances

The only flexibility is with Capital Allowances.

Options include:

Amend 2009/10 return to reduce capital allowances claim (if any) to reduce losses b/f and thereby increase value eligible to future capital allowances on.

2010/11 results of £23,407: if this is after Capital Allowances then reduce or eliminate the claim as is most appropriate to more effectively use the losses b/f.

As previous posters have said losses brought forward MUST be offset against the first available subsequent profits arising.


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