Oliver Niland & Co - Chartered Accountant and Tax Specialists

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Can I offset a loss on my trade against my other income ?

May 20, 2022

CAN I USE A LOSS ON MY TRADE AGAINST OTHER INCOME ?

Yes, it’s called S.381 loss tax relief

If you are self-employed or part of a partnership and you make a loss in a tax year, you can offset that loss against your other income such as P60 or rental income.  This could generate a tax refund.

Also if you are married, you can use this loss if not used up against your spouse’s income.

From a tax planning point of view for start up businesses which are expected to make a loss in the first year of trading, it could be a way of getting a tax refund to fund the business in the early stages.

Like all tax reliefs, it is subject to a few catches listed below

  • Farmers can only get it for a max of 3 years
  • Has to be claimed within 2 years of tax year when loss was made
  • Trade has to be taken on a commercial basis
  • If only takes you less than 10 hours a week working on trade, then the loss relief is restricted
  • Loss relief restricted to property developers
  • Losses incurred before you begin to trade cannot be used

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie

 

 

 

 

 

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Copyright © 2025 Oliver Niland & Co

About Us

Oliver Niland is a Chartered Accountant and a Tax Specialist with over 15 years experience of helping small business with tax issues and accounting challenges.

In addition, Oliver advises small businesses in terms of growing their business.

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Contact us at:

Phone:   (091) 763817

Email:    oliver@taxreturnhelp.ie

Unit 8,  Royal Rock Park,

Ballybane Industrial Estate,

Galway.

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Contact Us

Oliver Niland & Co – Chartered Accountant
Unit 8, Royal Rock Park,
Ballybane Industrial Estate,
Galway.

Telephone:  (091)  763817
Mobile:  (087) 984 6979
Email:  oliver@taxreturnhelp.ie 

(Right across from Thomas McDonagh’s hardware store and directly behind the Royal Rock Café )