How I can get corporation
tax loss relief?
If your business or company is responsible
for Corporation Tax also makes a
loss from trading or business, the selling or disposal of a capital asset, or
on capital income, then you probably able to claim relief from Corporation Tax.
You obtain tax relief by balancing the loss
against your different profits or gains of your company in the same accounting
period. You can further decide to bring the loss back, if you do not it will be
carried forward to another accounting term.
Tax losses after
1 April 2017
These types of business or trading losses are carried
forward. In maximum cases, they could be set against the entire profits of the
business, or in some circumstances, against the whole profits of a group
company. You must make to a claim for the relief in 2 years of the end of the
accounting term in which the losses are to be set off. The claim should usually
be executed amending your tax return.
Profits
after from 1 April 2017
There are more limitations on the whole amount that can be
relieved for profits of accounting terms from 1 April 2017.
These apply to carry forward business losses so that the
whole
the amount that could be relieved
applying carried-forward business losses that occurred before 1 April 2017 is
limited to, broadly, the value of an allowance up to £5 million, plus fifty per
cent remaining business profits after deduction of the allowance
overall amount that could be
relieved managing most types of carried-forward losses - including
carried-forward business losses acquired either before or after 1 April 2017 -
is limited to, broadly, the amount of an allowance up to £5 million, plus fifty
per cent of outstanding total profits after the discount of the allowance.
Read more: New Rule For Company Losses
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