��˾����ҹ����

Current year relief for trading losses

Trading losses can be offset against total profits of the same period. Total profits covers, for example, chargeable gains or non-exempt dividends. The loss is set against profits before any qualifying charitable donations have been deducted, see the Qualifying charitable donations guidance note.

The maximum claim for relief is the lower of the available loss or the available profit. In other words, no partial claims are allowed and the claim must either use all of the loss, or eliminate all of the available profits.

See Example 1.

Once trading losses have been relieved against profits of the same period in which the loss was generated, a claim may also be made to carry back any remaining loss against profits of the preceding 12 months. This is explained in more detail below.