Making best use of a loss: Sole traders and partners
by Stephen Relf
1. Sideways relief
1.1. Set against general income
1.1.1. Of current year
1.1.2. Of prior year
1.1.3. Of both
1.2. Restrictions apply
1.2.1. Not available if cash basis applies
1.2.2. Cap on total reliefs applies
2. Early years' loss relief
2.1. Loss in first 4 tax years
2.2. Offset against general income
2.2.1. Of last 3 tax tears
2.2.2. FIFO
2.3. Restrictions apply
2.3.1. Not available if cash basis applies
2.3.2. Cap on total reliefs applies
3. Carried forward relief
3.1. Offset against trade income
3.1.1. Next year..
3.1.2. ...and so on
4. Terminal loss relief
4.1. Loss of last 12 months
4.1.1. xyz
4.1.1.1. xyz
4.1.1.2. xyz
4.1.1.3. xyz