CT600 Box 285: Trading Losses Against Profits of the Period

Box 285 on the CT600 is for trading losses claimed against total profits of the same accounting period. This is the immediate relief claim for current-year trading losses.

What Goes in Box 285?

Box 285 captures the amount of current trading loss you're claiming against other profits in the same period. This might include offsetting against:

• Property income
• Chargeable gains
• Non-trading income
• Any other profit source

If your company has no trading loss, or no other profits to offset, Box 285 will be zero.

How Box 285 Works

The Basic Concept

If your company:

1. Makes a trading loss, AND
2. Has other income in the same period

You can claim Box 285 relief to offset the trading loss against that other income.

Example Scenario

Income Source	Amount
Trading loss (Box 170)	(£30,000)
Property income (Box 190)	£25,000
Chargeable gains (Box 210)	£15,000
Total other profits	£40,000

Box 285 claim: £30,000 (the full trading loss)

Result: Taxable profit reduced to £10,000

When to Use Box 285

Typical Scenarios

1. Mixed income company - Trading loss + property profit
2. Asset sale year - Trading loss + capital gain
3. Investment income - Trading loss + non-trading income

Benefits of Current Year Relief

• Immediate tax saving
• No need to wait for future profits
• Reduces tax liability now

Box 285 vs Other Loss Boxes

Understanding the different loss relief options:

Box	Purpose	Direction
170	Trading loss (the loss itself)	-
220	Prior year losses used	← Past losses
225	Losses carried back	← To previous year
285	Current losses against other income	↔ Same period

Box 285 is specifically for using current trading losses against current other profits.

Calculating Box 285

Step-by-Step

1. Identify current trading loss (from Box 170)
2. Calculate total of other profits (property, gains, etc.)
3. Box 285 = lesser of: loss amount OR other profits
4. Any excess loss can be carried back or forward

Example Calculation

Loss exceeds other income:

• Trading loss: £50,000
• Other income: £35,000
• Box 285: £35,000
• Remaining loss: £15,000 (carry forward or back)

Other income exceeds loss:

• Trading loss: £20,000
• Other income: £45,000
• Box 285: £20,000
• Taxable profit: £25,000

Making the Box 285 Claim

It's Optional

Box 285 is a claim - you don't have to use it:

• You might choose to carry forward losses instead
• If you expect higher profits (and tax rates) later
• Or if you have other strategic reasons

All or Nothing?

For the same period relief, you claim what you can use. Any excess has to go elsewhere (carry back or forward).

Interaction with Other Reliefs

Priority of Deductions

When you have multiple deductions:

1. Trading losses against same trade
2. Box 285 against other profits
3. Group relief
4. Carry back claims
5. Carry forward

Example: Multiple Reliefs

Item	Amount
Property income	£30,000
Trading loss	£45,000
Box 285 claim	£30,000 (max)
Remaining loss	£15,000
Group relief claimed	£10,000
Carry forward	£5,000

Companies with Multiple Activities

Trading + Property

For companies with both activities:

• Trading makes a loss
• Property makes a profit
• Box 285 offsets one against the other

This is a key advantage of companies - flexible loss utilisation.

Trading + Investments

Similarly:

• Trading loss offsets investment income
• Immediate relief rather than waiting

Related Boxes

Box	Description
170	Current trading loss
215	Gross profits before deductions
220	Losses brought forward
225	Losses carried back
285	Trading losses against other profits (this box)
235	Total profits after all deductions

Common Questions

I have a trading loss and no other income - do I use Box 285?

No. Box 285 is for offsetting against other income in the same period. If you only have trading activity, the loss simply carries forward (or back).

Can I choose how much to claim in Box 285?

Generally, you claim what's available and useful. There's limited benefit to leaving relief unclaimed unless you're planning for specific future scenarios.

What happens to the loss I can't use in Box 285?

Options include:

• Carry back to previous 12 months (Box 225)
• Carry forward to future years
• Group relief if applicable

My company has property profit and trading loss - both get taxed?

No. The trading loss in Box 285 offsets the property profit. You only pay tax on the net figure after the offset.

When Using TinyTax

TinyTax handles Box 285 automatically:

1. If you have a trading loss AND other income
2. TinyTax identifies the offset opportunity
3. Box 285 is populated appropriately
4. Remaining loss flows to carry forward

Most small trading-only companies won't use Box 285 (no other profits to offset).

Related Articles

• CT600 Box 170: Trading Losses
• CT600 Box 220: Losses Brought Forward
• Corporation Tax Losses Guide
• CT600 Boxes Explained

Need Help?

TinyTax calculates loss relief options automatically, including Box 285 claims where applicable.

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