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in the study text of tx21
topic of trading losses for individuals,
the terminal loss relief;
the text had the following written:
the relief to is to set the terminal loss against trading profit of the last tax year (if any) and then carry back three tax years on a LIFO basis.
Does this mean under the terminal loss relief, the relief can be claimed up to 4 years back in total? or have i understood it wrong?
Once again I emphasise the importance of working through the lectures and study notes, but in relation to what you are asking the actual CARRY BACK period is the 3 years prior to the final tax year but if there was a trading profit assessment in the final tax year (extremely unlikely) the relief would be applied firstly in that tax year before then carrying back to the preceding 3 tax years