The short version: Brought forward means using a loss from a previous tax year against this year’s profits. It reduces your taxable income and therefore your tax bill.
How does it work?
Imagine you made a £5,000 loss last year and a £40,000 profit this year. You bring forward that £5,000 loss, and you only pay tax on £35,000.
What can you bring forward?
Trading losses, capital losses, and property business losses can all be carried forward. But you can only set them against the same type of income. A capital loss can’t offset trading profits.
How long can you carry them?
There’s no time limit on most losses. You can keep carrying them forward until you’ve used them up.
Brought forward vs carry forward
Same thing, different perspective. You carry forward from last year’s viewpoint. You bring forward from this year’s viewpoint. The accountant’s version of tomato, tomahto.
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