Share this content

Cash accounting carry back of losses

Didn't find your answer?

My client,self employed has used cash accounting for his tax returns for many years making a profit each year. Due to Covid there was a loss in 2021 tax year.

Up until now losses could not be carried back under cash accounting.  Can this now be done under the new Covid carry back rules.

Thanks Graham

Replies (3)

Please login or register to join the discussion.

avatar
By Tax Dragon
04th May 2021 17:53

Have you tried looking the new rules up? That's what I'd do, if I had your question. (I don't.)

Thanks (0)
RLI
By lionofludesch
04th May 2021 19:15

Come off cash accounting.

It's rubbish. Far too many disadvantages.

Thanks (0)
avatar
By Ardeninian
05th May 2021 06:07

No they cannot. Cash basis trades cannot make s64 loss claims, which are a prerequisite for extended loss carry back relief under the new rules being brought in in the Finance Bill.

Thanks (0)
Share this content