Share this content

Losses brought forward

Losses brought forward

My client has trade losses brought forward of £30,562. Curreny year profits are £23,407. My tax software (BTC) is forcing me to offset the whole £23,407 of brought forward losses against this years profit. Is that correct? can I not restrict the loss off set so as not to "waste" the personal allowance of this year?


Please login or register to join the discussion.

By dreamcatcher
18th Jan 2012 16:16

The tax software is correct. 

The tax software is correct.  The loss can not be restricted to use the personal allowance.

Thanks (2)
18th Jan 2012 19:46


software is correct

Thanks (1)
By DMGbus
18th Jan 2012 21:11

Tax planning - Capital Allowances

The only flexibility is with Capital Allowances.

Options include:

Amend 2009/10 return to reduce capital allowances claim (if any) to reduce losses b/f and thereby increase value eligible to future capital allowances on.

2010/11 results of £23,407: if this is after Capital Allowances then reduce or eliminate the claim as is most appropriate to more effectively use the losses b/f.

As previous posters have said losses brought forward MUST be offset against the first available subsequent profits arising.


Thanks (1)
Share this content