Which of the following can a company's trading losses be offset against?

A company's trading losses have flexibility in their offsetting capabilities, allowing them to be utilized in various ways. They can offset against income and gains from the same accounting period, which helps businesses to reduce their taxable income for that year. This immediate relief can be crucial for companies suffering losses.

Additionally, trading losses can be carried back to the previous year. If the company had profits in the prior year, this carryback can generate a tax refund, providing important cash flow support.

Furthermore, trading losses can be carried forward to offset profits from the same trade in future years. This continues the support for the business as it seeks to return to profitability.

The ability to offset losses in these multiple ways is a significant aspect of tax planning for businesses, giving them strategic options to manage their overall tax liabilities effectively. By enabling the losses to be used in the same period, prior years, and future profits, the tax system acknowledges the ups and downs of business performance.