I have a client who is a sole trader and has made o profit of £8000 but he is also a partner with his wife in another business which has made a loss of £2000. Can he offset the loss in the partnership against the profit as sole trader when submitting figures for self assessment? I only do the books for the sole trader and am a little out of my depth.
Usually you can if they are both of the same type such as a trade.
For example as a soletrader he is plumber, as a partner they sell goods in a online shop. Both profits are from a trade, so losses in one can be offset against profits in the other.
If the partnership is property rental, then generally he wont, as this is not a trade. There are some exceptions but as a general rule.
If the partnership losses are allowable, then the division of the loss would need to be looked at.
