background image
7.1. General Rules

Ordinary losses may be deducted in calculating income taxed at the same rate, a lower reduced rate, or exempt amounts, with excess losses allowed to be carried forward up to six years. Unrelieved losses from a business may be deducted in calculating income from an investment, while unrelieved losses from an investment may only be deducted only in calculating income from an investment.

Prior to 1 April 2018, carried-forward losses could only offset up to 35% of taxable income per year, but this restriction has been abolished. To transition, any balance of losses as of 31 March 2018 will be treated as a loss incurred in the 2018/19 year.

Where there is a change of ownership greater than 50%, carried forward losses will become non-deductible, unless there is no change in the business for at least two years after the change of ownership.