Carrying losses forward for a start-up partnership

Hi, I am the nominated partner in our new farm partnership. We are a start up (in our second accounting period) and have bought a lot of equipment in the 2024/25 tax year but are not yet generating any income - the equipment is things like a polytunnel, a chiller unit, propagation trays, a greenhouse, crop protection nets, weeding equipment etc. and we are expecting to start generating trading income (from selling veg boxes) in 2026. This means that the AIA is not an option for us on these purchases. I am trying to work out the best way to deal with the cost of our equipment in our partnership tax returns. I have a few questions: - Can general partnerships use writing down allowances? - Is there a limit on carrying business losses forward? (I can see guidance on 4 years as the limit to apply them retrospectively but I want to carry them forward from now to a time when we are making profit) - Is there any rule that equipment purchasing can't be treated as a business loss (rather than using AIA or writing down allowances)? Thanks for your help Kate

Hi Kate Winters,
The costs incurred by the partnership, prior to the partnership commencing trading are accounted for in the tax year that trading commences, even if this results in a loss.  
Please have a look at PM163210 (PM163360 - Expenses paid by partners) for claims on capital allowances for partnerships and expenses paid by partners at PM163360 (PM163360 - Expenses paid by partners).  
Please also have a look at PM191200 onwards for claims and elections that affect partnership profits (PM191200 - Claims and elections that affect partnership profits).  
Equipment purchased for the partnership cannot be treated as a business loss.  Their cost is deducted from the gross turnover, even if this results in a loss arising.
Thank you.