»Ê¹ÚÌåÓýapp

CTA09/S463A to S463I, CTA10/S45A to S45H

»Ê¹ÚÌåÓýapp loss relaxation applies for carried-forward losses sustained on or after 1 April 2017.

Five types of loss are affected. »Ê¹ÚÌåÓýappse are trade losses, non-trading loan relationship deficits (NTLRDs), non-trading losses on intangible fixed assets (NTLIFAs), management expenses and UK property business losses.

»Ê¹ÚÌåÓýapp 1 April 2017 commencement date means that the rules applying to carried-forward losses depend partly on whether they were sustained before or after that date. Companies should make sure that their records reflect this and keep pre- and post-1 April 2017 losses separate, to avoid mistakes in their returns.

Trade losses and NTLRDs

In most cases, trade losses and NTLRDs sustained from 1 April 2017 can be carried-forward and set against total profits of the company (CTA09/S463G, CTA10/S45A). »Ê¹ÚÌåÓýappse losses may also be available for group relief for carried-forward losses (CTM82000).

However, companies continue to be more limited in the way they can use losses sustained before 1 April 2017 and certain other losses sustained after that date. 

»Ê¹ÚÌåÓýapp following trading losses carried-forward can only be deducted from profits of the same trade, and cannot be surrendered as group relief for carried-forward losses:

• Trading losses sustained before 1 April 2017;
• Trading losses sustained on or after 1 April 2017 in certain particular circumstances, for example where the trade has become small or negligible (CTA10/S45A to S45E).

»Ê¹ÚÌåÓýapp following carried-forward NTLRDs can only be deducted from non-trading profits and cannot be surrendered as group relief for carried-forward losses:

• NTLRDs sustained before 1 April 2017;
• NTLRDs sustained on or after 1 April 2017 in certain particular circumstances, for example where an investment business has become small or negligible (CTA09/S463H).

»Ê¹ÚÌåÓýappre is further guidance on the relaxation for trade losses at CTM04100 onwards.

NTLIFAs, management expenses and UK property business losses

Companies continue to be able to set carried-forward management expenses, UK property business losses and NTLIFAs against their total profits.

Losses of these types sustained on or after 1 April 2017 may also be available for group relief for carried-forward losses.

Group relief for carried-forward losses is not available for any losses sustained prior to 1 April 2017.

»Ê¹ÚÌåÓýappre is further guidance on the relaxation for NTLIFAs at CIRD13540 and UK property business losses at PIM04236.

Scope

»Ê¹ÚÌåÓýapp changes set out above apply for all companies and unincorporated associations within the scope of CT.