Unrelieved terminal loss

Hi

I have a client who had 2 business, sole trade, newsagents and a Ltd Co. He closed the newsagents in Dec 10 and I've just completed the final period [10 mths] and it shows a taxable loss inc redundancy payments.

Reading thru my tax manual, HMRC etc I understand I can carry back the loss 3 yrs but this leaves part of the loss unrelieved. I have had it suggested that the unrelieved part can be offset against his other income in the same tax yr, i.e. Ltd Co salary and divis.

Is this correct as I can find no reference to this option?

Regards

Mark