If I change my business activity what happens to my tax losses?
We’ve had a couple of enquiries recently from people changing trades and hoping to use the losses from the old business against the profits from the new one. The rules are quite strict where losses from previous years are carried forward – in general they can only be used against the old trade. There are some useful ways of using losses in the early years of sole-trader businesses to claim back personal tax paid in previous years.
