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Hi, companies have to do current year relief, but can choose if they want carryback or not while a sole trader can choose not to do current year or carryback. Is that right?
When a company or sole trader ceases to trade and the loss in the final 12 months can be carried back. What if the final accounting period is only 4 months? Should I apportion the previous accounting period to add 8-months losses to offset previous 36m profit? Many thanks 🙂
Companies must do current year if they want to carry back but could do neither and just carry forward. Individuals don’t have to do current year first before carry back . You are right terminal loss relief is for losses in the final 12 months. For individuals that is why we do the terminal loss calculation ( see OT notes chp 7 )
and for companies we would find the net result for the final 12 months of trading
Hope this helps
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