Non-trade losses

In this lesson

1. 0:00 Corporation tax losses: updated rates and overview
2. 0:43 Non-trade losses: relief options and restrictions
3. 2:01 Property and capital losses: separate treatment rules
4. 4:49 Elegance Limited: worked example with multiple losses
5. 6:25 Property loss relief: priority and carry-forward mechanics

About this lesson

The video covers non-trade loan relationship deficits, property losses, and capital losses—each with distinct relief options—then shows you how to sequence relief claims to maximise tax savings across current and prior years. You'll discover why the new three-band corporation tax structure (19%, marginal relief, 25%) matters when choosing between current year and carry-back relief, and how to handle losses when ownership changes. This is essential knowledge for ATX and SBL, particularly when advising on loss-making acquisitions or restructurings. The lesson walks through the mechanics of each loss type: non-trade deficits and property losses can be offset against total profits in the current year (with choices on timing and amount), carried back to prior year income only, or carried forward; capital losses are ring-fenced and can only offset capital gains. You'll see a worked example—Elegance Limited—showing how to layer relief claims correctly: deal with property losses first, then trading losses, sequencing current year claims before carry-back to maximise the tax rate saved. The key takeaway is understanding the order of relief and the specific rules for each loss category so you can advise clients on optimal loss utilisation strategies.

Duration: 8m