Pay and File first year trade accounts loss

[querydavid]

I have a query related to submitting my pay and file for 2010.
I started farming in Autumn of last year. I did not buy in my first cattle until spring 2011 nor did I receive any grants in 2010, but I did have expenditure on getting fences and pens ready for the cattle and general repairs and motor expenses etc in 2010.
I have therefore run at a loss of 10k which the form 11 allows me to offset against my other income, is this ok to do so or should I have informed revenue I started the trade?
I seems a bit strange that I can start a trade with no sales or purchases but offset all the expenditure is this normal in the first year of trade?
In comparison for the accounts for 2011 to be submitted next year I will have made a profit in the farming.

 

[trg]

The costs you incurred are allowable as they were wholly and exclusively for the purpose of the trade. It would not be unusual for a year one farmer to have no income particularly as you started late on in the year.

You can elect to write off the farming loss for that year against other income, up to a max of 3 consecutive years. You can also decide not to do that and bring the losses forward. This may be advantageous if you feel you will make a farming profit. The immediate cash benefit would be got by off-setting against other income now assuming you have paid tax in your other income.

What age are you? If you qualify as a young farmer then you shuold be entitled to 100% stock relief which is a massive help in the year of purchase.

 

[DB74]

You can elect to write off the farming loss for that year against other income, up to a max of 3 consecutive years. You can also decide not to do that and bring the losses forward. This may be advantageous if you feel you will make a farming profit. The immediate cash benefit would be got by off-setting against other income now assuming you have paid tax in your other income.

I think that pre-trading losses can only be carried forward against future profits from the same trade and can't actually be offset against other income in the same tax year.