Self Assessment - carrying loss forward? 4 September 2022 at 9:56PM in Cutting tax 2 replies 91 views

qwertyqwerty

Hi There

If I accured loss in the last financial year, can I use this loss to offset against any profits?  If so and I am still in loss, could it be carried over to the folowing year too?  Is there a limit on how many years loss can be carried forward?  Thanks

baser999

My understanding is you should be able to offset against the following years profits. If there’s still a balance, carry forward again. Would stress that it’s been a long time since I’ve worked in tax profession so rules might have since changed. Have you tried checking out HMRC site? 

Jeremy535897

Are you a sole trader? If so, do you use the cash basis? Do you have any other sources of income?
There is a lot more that you can do with trading losses, so long as you don't use the cash basis, than carry them forward. See:
https://www.litrg.org.uk/tax-guides/self-employment/working-out-profits-losses-and-capital-allowances/what-if-i-make-loss