Commentary

D1.1101 Summary of corporate tax loss relief

Corporate tax
Corporate tax | Commentary

D1.1101 Summary of corporate tax loss relief

Corporate tax | Commentary

Division D1.11     Losses

For updates affecting this Division please see Part D0 Updates

Corporate tax relief for losses

D1.1101 Summary of corporate tax loss relief

For the latest New Developments, see ND.1900, ND.1906.

Corporate tax losses can be relieved in a variety of ways which includes being utilised against current year and prior year profits, group relieved to other members of the same group or consortium and carried forward for relief against future profits or income. Losses can arise in the trade of the company, through its investment activities and loan relationship expenses, through owning properties or intangible assets. The table below summarises the types of losses and main reliefs available and where the detailed commentary can be found. There were also substantial changes to the corporate tax loss rules for carried forward losses arising on or after 1 April 2017 and therefore the various ways in which a company may obtain relief for different types of losses are split below into pre and post 1 April 2017.

The 2017 loss reforms also introduced a restriction on the utilisation of losses carried forward, see D1.1108B.

Type of lossLosses arising
on or after 1 April 2017
Losses arising
pre 1 April 2017
Trading losses– set against total profits in the current accounting period (CTA 2010, s 37) (C) (D1.1104)– set against total profits in the current accounting period (CTA 2010, s 37) (C)

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