Pre-Budget Report 2008 - Income tax…relief for trading losses
At the moment, trading losses suffered by businesses may be set against profits in two ways:
- carried back up to one year, to set against profits in the previous year; or
- carried forward against future trading profits from the same trade.
The Chancellor has announced that, for trading losses suffered during periods ending in the current tax year (ie to 5 April 2009) up to £50,000 of the loss may be carried back up to three years.
There is no restriction on the amount of the loss that can be carried back twelve months, or carried forward against profits from the same trade.
Date: 25th November, 2008
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