8.5.1 Overview

Relief for carry-forward losses was one of the reliefs that was subject to the changes introduced by F(No. 2)A 2017. Previously, trading losses carried forward were automatically offset against the first profits from the same trade.

Losses arising from 1 April 2017 onwards (as detailed at 8.5.2 below), which are carried forward to a later period, can now be offset against total profits, unless any of the restrictions (see 8.3.3) or anti-avoidance provisions (in Chapter 15) apply.

The amount of future profits against which the trading losses carried forward can be set is limited to the ‘trading profits deductions allowance’ (see Chapter 10).

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