Current Year Offset
A business loss (from a trade, profession, or vocation) can be offset against any type of income in the same tax year – including salary, rental, and investment income. A capital loss can only be offset against capital gains (not against ordinary income).
Carry Forward
Business losses not fully offset in the current year can be carried forward to future years, but in subsequent years they can only offset income from the same business or a similar trade. Capital losses can be carried forward indefinitely to offset future capital gains.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.