Trading losses are they after Annual Investment Allowance?

Can anyone confirm using the figures below, what is the trading loss that can either be carried forward or set off against earlier years income:

Profit per accounts £3,800

Less AIA (capital expenditure) £5,300


Net business loss for tax purposes £1500

Is the trading loss £1,500 or is it actually a profit of £3,800?

If it is a loss of £1500, I want to offset this against prior years tax paid under PAYE, if I can.  This is the first year of trade.

Frustrated as I cannot see an clarity on HMRC's site to this rather basic point!

Sorry if I am being stupid.



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Tax or accounting?

Kent accountant |
Kent accountant's picture

Hate to be picky

Paul Scholes |
Paul Scholes's picture

Well done...

Kent accountant |
Kent accountant's picture


John Cotter |