Self Employment Losses Brought forward

Growingold · 20 April 2019 at 8:12AM

Hi
Just wondered if anyone knew the correct treatment of self employment losses brought forward from previous years. Do you have to use them against first available profits if your Personal Allowance will cover it or can you carry them all forward to use in later years?
Thanks in advance.

Sibbers123 · 20 April 2019 at 8:18AM

Yes, losses have to be offset against the 'first available profits from the same trade'

MDMD · 21 April 2019 at 7:21PM

And you can’t restrict the loss claim to preserve the personal allowance - you must use as much as possible

busybee100 · 21 April 2019 at 7:27PM

Capital Allowances don't have to be used each year if the previous years loss takes you below your personal allowance.

Growingold · 6 May 2019 at 8:14AM

Hi there,

Thanks for your replies. I have been looking on line for where this is specifically said ('offset against the 'first available profits from the same trade' but cannot find it.) Please does anyone have a reference where I can look it up? I have read HS227 Losses helpsheet but cannot see this.

Thank you in advance.

uknick · 6 May 2019 at 10:01AM

Try this

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim85060

Self Employment Losses Brought forward

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