Dear All
I have a client who had a drecleaniing business for short period ( within one year ) and made loss of £10K. He had reported the loss in 2011/2012. Prior to this period he was employed and paid sufficent PAYE. During the 2012/13 he started a minicab business and made large taxable profit.
As per my knowledge two business sectors are differant and losses in previous trade can't be set off against the current profit. Hence losses in the Drycleaning business can't be carried forwad and set off against Minicab business. I may be wrong .
Could you please confirm above and advise how can I get some relief for the losses in the previous year.
Thanks in advance.