Trade losses

Enter here the trade loss brought forward from earlier years or brought back from later years, as well as details of the allocation of any current period loss.

We’ve made changes to accommodate the requirements of Finance (No. 2) Act 2017. Depending on when your company periods land, you’ll notice differences in the available fields on the Losses tab.

You can now enter group relief surrendered for company periods commencing on or after April 2019.

Brought forward loss Enter at Brought Forward Loss the trade loss incurred in earlier periods and brought forward to this period.
Set against trade profits If the company has trade profits in the current period, and you are electing for the brought forward loss to be utilised against these profits, then enter the amount to be utilised here.
Set against total profits If the company has non-trade profits in the current period, and you are electing for the brought forward loss to be utilised against these profits, then enter the amount to be utilised here. Note this relief is only available for losses arising on or after 1 April 2017
Group relief surrendered

Enter the amount of brought forward trade losses surrendered. A company cannot surrender a brought forward loss.
Terminal loss carried back to earlier years If the company has ceased trading and you are making a Terminal Loss Relief claim, enter the amount of the terminal loss to be carried back here. Note this relief is only available for losses arising on or after 1 April 2017
Carry forward Any brought forward trade loss not used against trade or totals profits of the period or not carried back will be carried forward to the next period.

 

Enter at Brought Forward Loss the trade loss incurred in earlier periods and brought forward to this period.

This loss will be used to reduce any current period trading profit.

  • If the brought forward loss is greater than the current period trade profit, then the entire current period trade profit will be offset, with the remaining brought forward loss carried forward.
  • If the current period profit is greater than the brought forward loss, then all of the loss will be used against the profit, with none carried forward.

There is no election to use the brought forward trade loss against the current year trade profit, as any such loss must be used against the earliest available profit of the trade.

For periods starting on or after 1 April 2017, you’ll need to apportion the losses.

Brought forward losses arising pre 1 April 2017 may only be set against trade profits.

Brought forward trade losses arising on or after 1 April 2017 may be set against trade profits, except in certain exceptional circumstances in which case they may only be set against trade profits.

Brought forward loss Enter at Brought Forward Loss the trade loss incurred in earlier periods and brought forward to this period.
Set against trade profits If the company has trade profits in the current period, and you are electing for the brought forward loss to be utilised against these profits, then enter the amount to be utilised here.
Set against total profits If the company has non-trade profits in the current period, and you are electing for the brought forward loss to be utilised against these profits, then enter the amount to be utilised here. Note this relief is only available for losses arising on or after 1 April 2017
Terminal loss carried back to earlier years If the company has ceased trading and you are making a Terminal Loss Relief claim, enter the amount of the terminal loss to be carried back here. Note this relief is only available for losses arising on or after 1 April 2017
Carry forward Any brought forward trade loss not used against trade or totals profits of the period or not carried back will be carried forward to the next period.

For periods commencing on 1 April 2017 only those fields associated with losses arising before 1 April 2017 will be available.

Loss arising in period If the company has a trading loss for the current period, then the amount of the loss will appear here. The figure is the adjusted trading loss shown at Computation Preview.
Current year loss set off against other income If the company has non-trade profits for the period and Offset in current period has been ticked, then the amount of trade loss to be offset against non-trade profits will appear here. The figure will be the lesser of the trade loss and the non-trade profits.
Set off in current period Tick this if you are electing for the current period loss to be used against non-trade profits.
Losses available to carry back to previous year This figure is Loss arising in the period, less Current year set off against other income.
Amount claimed to carry back to previous year If the company has profits in the previous year and you are electing for the current period loss to be utilised against these profits, then enter the amount to be carried back here.
Terminal loss carried back to earlier years If the company has ceased trading and you are making a Terminal Loss Relief claim, enter the amount of the terminal loss to be carried back here.
Carry forward Any current period trade loss not used against current period non-trade profit or not carried back will be carried forward to the next period.
Loss arising in period If the company has a trading loss for the current period, then the amount of the loss will appear here. The figure is the adjusted trading loss shown at Computation Preview.
Set against total profits If the company has non-trade profits for the period and Offset in current period has been ticked, then the amount of trade loss to be offset against non-trade profits will appear here. The figure will be the lesser of the trade loss and the non-trade profits.
Set off in current period Select if you are electing for the current period loss to be used against non-trade profits.
Loss carried back to previous year If the company has profits in the previous year and you are electing for the current period loss to be utilised against these profits, then enter the amount to be carried back here.
Terminal loss carried back to earlier years If the company has ceased trading and you are making a Terminal Loss Relief claim, enter the amount of the terminal loss to be carried back here.
Carry forward Any current period trade loss not used against current period non-trade profit or not carried back will be carried forward to the next period.
Loss arising in period If the company has a trading loss for the current period, then the amount of the loss will appear here. The figure is the adjusted trading loss shown at Computation Preview.
Set off in current period Select if you are electing for the current period loss to be used against non-trade profits.
Set against total profits If the company has non-trade profits for the period and Offset in current period has been ticked, then the amount of trade loss to be offset against non-trade profits will appear here. The figure will be the lesser of the trade loss and the non-trade profits.
Maximum available for group relief Enter the maximum amount of trade losses available for surrender as group relief.
Group relief surrendered Enter the amount of trade losses surrendered.
Loss carried back to previous year If the company has profits in the previous year and you are electing for the current period loss to be utilised against these profits, then enter the amount to be carried back here.
Terminal loss carried back to earlier years If the company has ceased trading and you are making a Terminal Loss Relief claim, enter the amount of the terminal loss to be carried back here.
Carried forward Any current period trade loss not used against current period non-trade profit or not carried back will be carried forward to the next period.

For periods ending on or after 1 April 2017 this section will no longer be available, instead losses extinguished on cessation will be included in the Total Carried Forward section.

If you have selected Trade has ceased at the end of the period on Company Information, then ‘Loss extinguished on cessation’ will be the sum of the brought forward and current period trade loss not relieved against current or prior period profits.

Periods straddling 1 April 2017 are treated as two accounting periods in respect of profits and losses. The current period loss carried forward is time-apportioned. Where just and reasonable the apportionment can be adjusted.

Unless the trade has ceased, the sum of brought forward and current year trade losses not relieved against current or prior period profits are carried forward to the next period.

Enter here any loss brought back from later periods to be offset against current period profits.

You cannot bring back losses in excess of current period profit available to be relieved.