“This royal-blue infographic from Trueman Brown outlines the main ways UK businesses can claim tax relief for trading losses in the 2025/26 tax year. The header reads Understanding Relief for Trading Losses.
Section 1 explains how losses can be offset against general income, noting the requirement to claim the full amount and the cap of £50,000 or 25% of adjusted income.
Section 2 covers carrying forward trading losses to offset future profits of the same trade, highlighting that no sideways-relief cap applies and the loss must be used in the first profitable year.
Section 3 details special reliefs: early-trade loss relief (carrying back early years’ losses to the previous three tax years) and terminal loss relief (relieving losses from the final 12 months of trading against profits from the previous four years).
A final section summarises key 2025/26 updates including basis-period reform, sideways relief available on cash basis, and confirmation of the continuing income-cap rules. The design uses clear typography, numbered blocks, bullet points, and the Trueman Brown logo in the top-right corner.”
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