I have a terminal trading loss. With no taxable income in the previous two years, can the loss be carried back to the previous third year where I have Pension Income that was taxed as basic rate? I have a feeling that terminal losses can only be carried back against the same trade.
Thanks
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https://www.taxation.co.uk/Articles/2017/07/18/336697/loss-relief-option...
"If a sole trader ceases to operate, they can claim terminal loss relief. The loss can be offset against any trading profits of the final tax year of trade and then carried back and set against trading profits in the previous three years, taking the most recent year first (LIFO).
This is another all-or-nothing claim, the terminal loss is that arising in the final 12 months of the trade plus any overlap profits brought forward.
Note that a sole trader obtains relief for a terminal loss against trading profits as compared with a company whose terminal loss is relieved against total profits (s 89)."