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Loss against tax

Can I carry refunds I made from my business due to COVID back to the last tax year as a loss? I received payments for an event I was due to run, this had to be cancelled, I had to refund all. I would like to know if I can carry these back to 2019-2020 tax year as a loss adjustment.

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 4 November 2021 at 11:50AM
    Yes you can - against income of 2019/20 first, then 2018/19 and 2017/18. 

    Note it is not relief against tax but against income. You will receive tax relief (and Class 4 NIC relief) on the losses unless, of course, you operate on the cash basis where losses can only be carried forward against the same trade.
  • Thank you very much for your  help, yes cash basis for me so that is a great disappointment. Thank you
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