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Loss relief options available to business

19 July 2017 / Arpitha Ajit
Issue: 4608 / Categories: Comment & Analysis , Companies

Looking at a loss.


  • Losses may be set against income of different years.
  • Corporate losses are set against total profits namely all types of income and gains before deducting qualifying charitable donations.
  • Treatment for losses of sole traders differs from corporate loss relief.
  • Trading losses can also be set against capital gains.
  • Non-tax considerations may be relevant when allocating losses. 

Companies and sole traders are not always profitable; they may make losses too. However there are options available to use trading losses for both types of business although the reliefs differ.

It is easy to think that if a business makes a loss relief for this will be obtained by setting it against future profits and that even if sideways or carry-back options are considered it’s a case...

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