Unutilised Items (Capital Allowances, Trade Losses & Donations)

Key requirements

Subject to qualifying conditions, capital allowances and trade losses may be carried forward indefinitely, while donations generally have a five-YA carry-forward limit. All require the applicable shareholding test; carried-forward capital allowances also require continuation of the same trade or business. The relevant comparison dates differ by item, so a general assertion that ownership is unchanged is insufficient. Current-year allowances and trade losses may qualify for carry-back to the immediately preceding YA. Current-year allowances, losses and donations may qualify for group relief. Track balances by YA and category, and record any amount used under another route to prevent duplicate utilisation. Changes in ownership or activity should trigger a review before relying on accumulated balances.