Business Tax Non Trade Losses

[SarahW]

In order to cover all the criteria for business tax I have been asked to complete short bulletin notes to show understanding of Non Trade Losses.<BR><BR>Can anybody explain to me, what they are??

[Melanie]

Non trade losses are losses made when non-trade items are disposed of, such as fixed assets. When these items are disposed of, there will be either a profit or a loss made on the disposal, and if it is a loss, then the loss can be carried back or foward to be set off against non-trade profits made in a different period.<BR><BR>It is simply a way of separating trading activities/profits from non-trading activities/profits :)

[bryan]

I think you are confusing capital losses and losses on non trading loan relationships. <BR>Capital losses can be relieved against capital gains in the period or c/f to offset future capital gains, they cannot be carried back.<BR><BR>Losses on non trade loan relationships can be relieved against current period profits chargeable to CT, carried back 12 months to offset Sch D3 profits or c/f against future D3.