Carry Forward of Losses (s.83)

Question 1

What does a s.83 claim allow a trader to do?

Answer 1

s.83 claim allows a trading loss to be carried forward and set against future profits of the same trade.

Question 2

Does a claim need to be made? re: s.83

Answer 2

No, a s.83 claim is automatic

Question 3

When can a s.83 claim be utilised?

What is this loss relief often seen as?

Answer 3

When a loss is not relieved against other net income or against capital gains.

Often viewed as a “last resort” as it delays relief for losses.

Question 4

When is the deadline for the s.83 claim?

Answer 4

Claim must be made within 4 years from the end of the tax year in which the loss arose.

E.G. loss in tax year 19/20, claim made by 5 April 2024.

IN THAT ORDER
1. Tax year loss arose 19/20
2. 4 years from tax year loss arose 20/21, 21/22, 22/23, 23/24
3. End of tax year 5 April 2024