Commentary

D1.1109A Restriction on carried forward capital losses—examples

Corporate tax
Corporate tax | Commentary

D1.1109A Restriction on carried forward capital losses—examples

Corporate tax | Commentary

D1.1109A Restriction on carried forward capital losses—examples

These examples relate to the restriction on carried forward capital losses commentary at D1.1108B.

Example 1—restriction where the only type of carried-forward losses are capital losses

The company has the following profits and gains for the year to 31 March 2021 before any loss relief:

  1.  

    •     trading profits of £8m

  1.  

    •     chargeable gains of £10m

The company also has current year non-trading loan relationship deficits (NTLRD) of £2m and capital losses carried-forward from previous accounting periods of £14m. The full £5m deductions allowance is available to the company.

Summarising the steps outlined at D1.1108B in the table below, the calculation of taxable profits for the year to 31 March 2021 with the carried forward loss restriction is as follows:

Taxable trading profits
£m
Chargeable gains
£m
Total taxable

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