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If a loss is not relieved in the current or previous year against general income (see B8.202), it is possible to make a claim to have the unrelieved loss carried forward, and deducted from the profits of the same trade for subsequent tax years¹.

A carry forward loss must be deducted from the trading profits of a future year before those profits can be reduced by way of any other loss relief². Any remaining unused loss is then carried forward and used against the profits of the following year and so on, until all the unrelieved loss has been deducted³.

The relief must be claimed within 4 years after the end of the year of assessment to which the claim relates⁴. See A4.202 for commentary on the procedures required for the making of a claim.

For examples of cases where the relief was denied, see Richardson⁵ (the taxpayer was unable to establish that a loss had occurred) and Francis⁶ (the losses were not