A: If you have other sources of income in the year, for example P60 employment income, the loss can be offset against this. A refund of tax will then be due back to you for the current year.
If you are married and jointly assessed the loss can then also be offset against your spouse’s income. Any unused amount of the loss can then be brought forward to reduce any future profit from your sole trade.
You should always seek advice from your accountant to determine the most tax efficient use of losses.
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