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@ Tax Tutor, I am bit unclear about the trading loss relief for an ongoing unincorporated business ,…In the option of relieving losses against current year and/ or preceding year total income, if we choose to relieve against both current and preceding year,..is there a order to be followed…I mean should the loss be first set off against current year then previous year,..or preceding year first then current year, or it can be done either way….please respond…thanks.
Hi lume let me firstly apologise for the delay in reply to your query. I have been on vacation recently (still am!) but until notified by open tuition had not discovered the outstanding queries on the system so I am very sorry for the delay you have had. In relation to your query when an unincorporated trader incurs a loss they may relieve the loss against current year AND / OR preceding tax year – hence no set order it can be done in either way or indeed just restricted to one of the 2 tax years involved. This is very different to dealing with the INCORPORATED trade where a company MUST firstly relieve in the current period if it wishes then to carry back the loss to the preceding period(s)!
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