Where a person permanently ceases (B1.615) to carry on a trade in a tax year (the final tax year) a claim may be made to set any terminal loss against profits from the trade in the final tax year or the preceding three tax years1.
The relief is set off as far as possible against the profits of a later year rather than an earlier year, starting with the profits of trade of the final year2. If the loss cannot be fully used under the terminal trade loss provisions, any remaining loss is available for a different loss relief claim.
ITA 2007 makes it clear that relief is to be given in a way that minimises the claimant's income tax liability3.
Claims must be made within four years after
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Web page updated on 17 Mar 2025 17:15