Use of Losses for Tax Purposes

Losses arising from trading can be used to shelter other income sources from tax.

In the case of individuals, trading losses can be offset against all other income sources arising in the same year. For the corporate sector, losses can also be claimed against income from the preceding accounting period. Where a loss arises in a group company, the loss relief may be claimed across other qualifying group companies. In all cases, any unclaimed losses will be carried forward for offset against income from the same trade in the future.

The order of offset of losses is also very important. We offer advice on the full tax implications of incurring tax losses and their efficient use as tax shelters against income.

We advise on Capital Gains Tax losses ( realised and unrealised ) and the circumstances in which they can be used to shelter future Capital Gains.