A loss that has not been relieved in any other way can be carried forward and is then automatically relieved against the first future profits that are made in the same trade. See 1.3.13 for a discussion on whether the “same trade” is still carried on where there have been gaps in trading. As the future set-off is automatic, it is relieved in priority to any trading losses arising in later years. This also means that future personal allowances can be wasted. This method of loss relief is not subject to the £50k/25% cap (see 1.3.1), because it is not set against income from any other source.