Tel: 01736 795753
This email address is being protected from spambots. You need JavaScript enabled to view it.

Corporation Tax loss relief for losses carried forward

Source: HM Revenue & Customs | | 09/04/2019

Corporation Tax relief may be available where your company or organisation makes a trading loss. The loss may be used to claim relief from Corporation Tax by offsetting the loss against other gains or profits of the business in the same or previous accounting period.

The loss can also be set against future qualifying trading income. Any claim for trading losses forms part of the Company Tax Return. The trading profit or loss for Corporation Tax purposes is worked out by making the usual tax adjustments to the figure of profit or loss shown in your company or organisation’s financial accounts.

Some of the basic requirements for a trade loss to be set off against other income sources include: 

  • being within the charge to Corporation Tax 
  • the trade must be carried on a commercial basis and with a view to the realisation of profit 
  • at least some of the trade must be carried out within the UK

The rules for the Corporation Tax treatment of carried forward losses changed from 1 April 2017. The changes increased flexibility to set off carried forward losses against total profits of the same company or another company in a group whilst at the same time introduced new restrictions as to the amount of profits against which carried forward losses can be set. Any losses carried forward prior to 1 April 2017 fall under the old loss relief rules and must be handled accordingly. 



Search Archive


Latest News

On your e-bike
11/06/2019 - More...
The Cycling Minister, Michael Ellis, has announced a number of changes to the Cycle to Work scheme

HMRC cancels penalties charged to 6,000 families
11/06/2019 - More...
The High Income Child Benefit Charge (HICBC) was introduced in January 2013 and applies a charge to

HMRC blocks phone fraudsters
11/06/2019 - More...
Fraudsters have been blocked from using HMRC’s most used helpline numbers after the

Search

Our Address

Greenwood Wilson
The Old School
The Stennack
St Ives
Cornwall
TR26 1QU

Contact Us

tel: 01736 795753
fax: 01736 798642
This email address is being protected from spambots. You need JavaScript enabled to view it.

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login