B/Fwd trading Loss and rental profit
Just taken on a client where the previous agent has prepared a CT600 but been unable to file it. I think loss relief may be the issue but a while since I've been involved in this.
The company carried forward trading losses of £60,000 from the prior year and had a profit of £9,000 this year and £20,000 profit from rental income. Stage one appears corrects in using £9,000 of the loss C/F to contra this year’s profits. Then the tax comp shows £20,000 of the C/F trading losses used to contra the rental profits (shown in box 30 of the CT600). Am I right in thinking that only current year trading losses (rather than those brought forward) can be used against the current year rental profit? There were no rental losses carried forward.
I would welcome any comments on the above.