Skipping years when carrying forward CT losses

Skipping years when carrying forward CT losses

Didn't find your answer?

Hello

My client has made a loss last year and will make a profit this year. She does not want to offset her losses to reduce her CT liability this year, but would like to use it in future years. Is this possible and if so is there a time limit to carrying forward the loss?

Many Thanks

Replies (5)

Please login or register to join the discussion.

avatar
By pjones
03rd Dec 2013 16:17

Not possible

Carried forwards loss offset against first available profits of the same trade - you cannot skip a year

Thanks (0)
By johngroganjga
03rd Dec 2013 16:24

Agree with the above - it's automatic.

As a matter of interest why does client want to skip a year?  Needless to say, the earlier the losses are used the greater their value!

Thanks (0)
Replying to Bertie2k:
paddle steamer
By DJKL
03rd Dec 2013 16:48

If the year could be chosen

johngroganjga wrote:

Agree with the above - it's automatic.

As a matter of interest why does client want to skip a year?  Needless to say, the earlier the losses are used the greater their value!

Whilst the OP has no choice re using the b/fwd losses in the first year possible, using in the earliest year would not always give the greatest value. For a company that moved between small company rate and marginal rate, being able to select which year to apply losses against might have saved tax: sadly this is not  an option.

Thanks (0)
avatar
By carnmores
03rd Dec 2013 17:22

well if there are CA's

there might be a possibility to defer, but then again why?

Thanks (0)
avatar
By GaryMc
03rd Dec 2013 20:21

Type of losses

Are these definitely trading losses? If so then it is open and shut that they can't skip years.

If they were non trade loan relationship deficits you can.

Thanks (0)