Terminal loss relief for trade losses in the final 12 months

Trading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years. CTA 2010, s 39

It is likely that this will involve an apportionment of losses incurred in the penultimate accounting period, because cessation accounts are not always exactly 12 months long. Where the carry back claim is made against profits of more than one accounting period, losses must be offset against later years first.

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