This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

They think it’s all over: Relief for terminal losses

By Sarah Bradford, October 2020

Sarah Bradford outlines the tax relief available to business owners for terminal losses. 

The tax legislation provides various reliefs for business losses, both for income tax and corporation tax purposes. The provisions include a specific relief for terminal losses.  

In the current climate, terminal loss relief is likely to be of particular relevance to businesses which found themselves struggling as a result of the Coronavirus pandemic before making the difficult decision to cease trading. 

Income tax relief for terminal losses 

For income tax purposes, relief is available for an individual, partner or trustees who make a terminal loss in a trade, profession or vocation which is permanently discontinued. This specific relief allows the taxpayer to claim relief for the terminal loss against: 

This is one of our 1907 Premium articles

To see this article in full and unlock access to our complete library of 1907 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!