Historically corporation tax trading losses could only be carried forward against profits from exactly the same trade.
But there is some good news, from April 2017 for company trading losses incurred on or after 1st April the carried forward losses can now be used against a profit from another trading profit, investment income and capital gains of the same company.
If the company has taxable profits in excess of £5million, the loss can be carried forward against the £5million, and then 50% of the remainder of the trading profits.
There are rules as per the order of loss setoff and for company groups, so if you would like further information or advice, please contact us…
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