The “carry forward” process lets you claim a loss as an expense. If you take a loss from the current tax year to the next tax, you can claim it back on your profits.
How do I carry forward a loss?
- Claim the loss on your Self Assessment tax return. Even if it’s tempting not to file a return if you made a loss, it’s worth doing. You can claim it back next year by “bringing it forward”.
- Only claim the loss against profit of the same kind. Put simply, if you lose money trading bitcoins one year, you can claim this loss as an expense the following year if you make profit selling a house, for example.
To read in more detail about how to claim your losses, take a look at the HMRC website.