https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim85060S83 Income Tax Act 2007 (ITA 2007)
Where a person (individual, partner or trustee) makes a loss in a trade (including a profession or vocation) and relief for that loss has not been given under another taxation provision the loss can be carried forward under S83, ITA 2007. Such a loss can only be set off against profits arising from the same trade.
Where the loss exceeds the profit (or there is no profit) the remaining loss (or the loss) can be set off against interest or dividends (including any tax credits) which would be regarded as trading receipts if they were not taxed under other provisions (S85 ITA 2007). See BIM40800 onwards for circumstances in which interest and dividends may be treated as trading receipts.
Such losses must be set off against the first year in which a profit arises and any balance must then be set off in the next tax year in which a profit arises.
The carry-forward is allowable provided the ownership and identity of the business during the tax years for which the allowance is claimed remain the same as during the period in which the loss was made (see Batty v Baron Schroder  23TC1, United Steel Companies Ltd v Cullington (No.2)  23TC91, Goff v Osborne & Co (Sheffield) Ltd  34TC441 and Rolls-Royce Motors Ltd v Bamford  51TC319).
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