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CTA10/S45, CTA10/S45A to 45H, CTA10/S137 (7)

»Ê¹ÚÌåÓýapp treatment of carried forward losses was reformed by F(2)A17 which introduced changes to the tax treatment of carried forward losses providing increased flexibility in how losses arising from 1 April 2017 can be relieved.

Losses incurred before 1 April 2017

Losses incurred before 1 April 2017 can only be carried forward and set against profits of the same trade.

Carried forward pre 1 April 2017 trading losses are also unavailable for group relief, they are only available for group relief in the period in which they arise.

Losses incurred from 1 April 2017

»Ê¹ÚÌåÓýapp treatment of carried-forward trade losses incurred on or after 1 April 2017 depends on:

• the period in which they were sustained, and
• certain characteristics of the trade.

Companies can set off most trade losses incurred from 1 April 2017 against total profits.

Companies may also be able to claim or surrender losses incurred from 1 April 2017 as group relief for carried-forward losses.

Trade losses incurred before 1 April 2017 and certain trade losses incurred at a later date are available for set off against profits of the same trade only.