This guidance note summarises significant relaxations on the use of losses impacting all companies regardless of size. It also covers an important restriction on the use of losses carried forward aimed primarily at larger companies and groups of companies with losses carried forward of greater than £5m. The restriction is set at 50% of profits.

The rules for carried-forward losses before 1 April 2017 provide in some cases that specified types of losses may only be carried forward against specific pools of profits. In other cases, there is no restriction to the type of profits that may be used for set-off purposes. For example, surplus management expenses of an investment business or investment company are carried forward against future 'total profits'.

Access this article and thousands of others like it free
for 7 days with a trial of TolleyGuidance.

ACCESS THE FULL ARTICLE

Already a subscriber? Login

Request a Free Trial to TolleyGuidance to gain access to the full article

Access this article and thousands of others like it free for 7 days. Written exclusively by tax professionals for tax professionals, TolleyGuidance combines tax technical commentary with practical guidance to support you day-to-day.

* denotes a required field