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This article applies to:

  • Product: Digita Personal Business and Trust Tax

Carry back a loss in Personal Tax

  1. Open the client in Personal, Business, and Trust Tax.
  2. Select
    Edit
    , then
    Schedule Editor
     from the main menu.
  3. Open the Schedules list.
    • If your client is a partner, double-click
      Partnership income
      .
    • If you client is a sole trade, or business-tax sole trade, double-click
      Sole Trade
      .
  4. Double-click the name of your client.
  5. If your client is a business-tax sole trade, double-click
    Current Tax Year Details
    .
  6. Select the
    Losses
     tab.
  7. Select the
    Section
     number for the appropriate relief from the drop-down list.
  8. Use the appropriate
    Amount
     field in the following tables to enter an amount for the previous tax year.
    • Other income section 64 (section 380/section 381)
    • Capital gains section 64 only
    • Trade profits section 89 only (section 388)
    note
    To find the refund amount, you'll need to review the prior year's tax return computations before and after the carry-back.
    .
  9. Make any necessary NIC adjustments
    1. In the tax year you want to carry the loss back to, select
      Edit
      , then
      Schedule Editor
       from the main menu.
    2. Double-click
      NIC Profits Adjustment
      .
    3. Select
      New
      .
    4. Select
      Trading Brought Back
      , then enter the profit covered by the loss in the
      Amount
       field.
    5. Select
      OK
      .
    The earlier year's computation will show a reduced liability to take account of the losses brought back and any NIC adjustments.
  10. In the current tax year, select
    Tools
    , then
    Payments
     from the main menu.
  11. Select
    Subtract from liability
     from the drop-down list, then enter the adjustment in the
    Amount
     field.
    note
    Today's date is shown for information. It's not used elsewhere in Personal, Business, and Trust Tax.
  12. Select
    OK
    Box 15 of SA110 is populated and the computation for your client is adjusted.
If you want to carry back a loss from the next to the current year, you roll forward to the next year and follow the steps to carry back a loss above to make the transaction.
important
Before you carry back a loss from the next to the current year, make sure the rest of the Return is complete and correct. This is because, after this point, any schedules that you create or delete in the current or next tax year may cause a malfunction of the Client Review Tool, Information Request Schedule, and the Data Carried Forward.