Do you mean you've losses forward and unused capital allowances from 2010?
There are specific boxes for these on Form 12:
"Capital Allowances brought forward from a prior year"
and
"Losses -Amount of unused losses from a prior year"
So do I go ahead and include them, thereby increasing the "2011 loss" - which I can then carry forward again the next year?
Smeharg,
Thanks for your reply. Yes, to clarify, I have both available to use from a prior year, however neither will make a material difference to the tax liability, which is already Zero. So do I go ahead and include them, thereby increasing the "2011 loss" - which I can then carry forward again the next year?
Smeharg & Mandlebrot,
I probably haven't made myself clear enough, but I think both your replies have clarified one part of my question, in that I now see that my losses from previous years simply accumulate and each year I enter the new cumulative figure.
The other part of my question which relates to the capital allowances - I do not need to utilise any of this, and therefore will enter "nil" as suggested. My understanding is that these need to used within 8 years, or else they are no longer applicable is that correct?
Guys
As per the original poster I would like to understand what happens to the losses carried forward
For example if I have accumulated losses of 20,000
And for the next 4 years I make a profit of 5,000
Does that mean zero liability for the next 4 years?
Can the losses accumulate indefinitely eg 20 years ?
Also I'm not clear on the capital allowances
I thought these were over a finite time span eg 5 years or say 8 years
And after that period of time they no longer apply
Thanks
Folks
It seems that I will be carrying forward losses for a long long time.
Maybe 20 years. But that might be useful in 20 years when I am retired.
So can any confirm there is no limit on losses carried forward?
It would be disappointing to learn otherwise in 20 years time.
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