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Company Losses

Currently trading losses in companies can be offset against

  • other income and gains in the same period;
  • all income in the previous period;
  • any income of a group company in the same period;
  • profits from the same trade in future periods.

The relief of non-trade losses is less flexible.

HMRC is now consulting on the best way to achieve the reforms promised from 1 April 2017, namely:-

  • trading losses arising after 1 April 2017 can be carried forward and set against all income in the same or a group company; and
  • Trading losses that arose before 1 April 2017 will still be available for offset against trading profit;


  • only 50% of profits over £5 million can be covered by losses brought forward.



Date: 8th June, 2016
Author: Cathy Corns


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