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)
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Not possible
Carried forwards loss offset against first available profits of the same trade - you cannot skip a year
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!
If the year could be chosen
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.
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.