Self Employed full 61 - Losses set off against other income for 2020 to 2021

If you run your business commercially for profit you can claim relief for the loss by reducing your income for the tax year 6 April 2020 to 5 April 2021. If the allowable loss is more than your income, you can claim the balance of the loss against your capital gains for the tax year 6 April 2020 to 5 April 2021, you do this on your capital gains page, or against your income or your income and capital gains of a previous tax year.

The time limit for this claim is 31 January 2023.

The amount of loss that you can claim may be restricted.

Do not make this claim if you used cash basis.

For more information about losses go to Relief for trading losses (Self Assessment helpsheet HS227).

Note: do not enter a figure in 'losses from this year set-off against other income for 2020 to 2021' if you use cash basis or claim trading income allowance unless you are claiming overlap relief.