Self employed trading loss

Self employed trading loss

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Hi

I should know the answer to this, but having a senior moment and would like some clarification please.

Sole trader made a loss of £5500 year ending 2012 and a profit £10800 after adjustments year ending 2013.  What I would like to know is

1  If the loss is carried forward he won't be making full use of his tax allowance, can part of the loss be carried forward?  I don't think he can use part of the loss, but would like confirmation please

2  Provided he has sufficient income for previous years, should he just carry the loss back?

Many thanks for any comments received

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By stephenkendrew
02nd May 2013 16:06

has to use all loss

You cannot claim to only use all of the loss - you have to use all of it and this could, therefore, result in some personal allowances being unused.

If there are capital allowances involved you may wish to reduce the claim to increase the 2013 profit (or reduce the 2012 loss) so that the balance of allowances to carry forward is increased.

Carrying the loss back can work, although again this could result in unused personal allowances. The loss can only be carried back one year, unless it's a relatively new self-employment.

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