Commentary

D1.1124A Summary of anti-avoidance on corporate tax loss relief

Corporate tax
Corporate tax | Commentary

D1.1124A Summary of anti-avoidance on corporate tax loss relief

Corporate tax | Commentary

Corporate tax relief for losses—anti-avoidance

D1.1124A Summary of anti-avoidance on corporate tax loss relief

There are various anti-avoidance provisions restricting corporate tax losses, these are summarised below:

Anti-avoidance on corporate tax losses—change of ownership

Anti-avoidance provisions restrict the use of losses following a change of ownership. In summary where there is a change in ownership and also the following listed conditions the restrictions apply as summarised below:

ConditionsConsequencesReferences
Major change in nature or conduct of trade of the company, or the company's activities become small or negligible.Trading losses arising after the change in ownership cannot be relieved against profits arising before the change and losses carried forward cannot be relieved against trading profits or total profits.
Relief is lost completely.
D1.1126
CTA 2010, Pt 14, Ch 2
Post 1 April 2017 change in ownership and major change in the business of the company.Losses eligible for carried forward relief against total profits are not available against post change of ownership profits, including terminal losses.
Relief is lost for five years.
D1.1126
CTA 2010, Pt 14, Ch 2A
Post 1 April 2017 change in ownership, and Trading losses available for carried forward relief, including terminal losses, are not available against the gain
Relief is lost for gains within five years.
D1.1127
CTA 2010, Pt 14, Ch

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