How the self-employed can use losses to cut past, current or future tax bills – Money tip #148

 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

Image: Arvind Balaraman / FreeDigitalPhotos.net

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