If you are self-employed and incur a trading loss you can use it reduce past, current and future tax bills. You can do this by setting the loss against:
- other income for the same year or the previous year
- gains for the same year or the previous year - if your other income is used up
- other income in the previous three years if your business started within the past four years
- profits for the business in the previous three years if your business has ceased
For more information read Tax allowances and reliefs if you're self-employed.
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