½Û×ÓÊÓƵ

Corporate trading losses ― overview

Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance

Corporate trading losses ― overview

Produced by a Tolley Corporation Tax expert
Corporation Tax
Guidance
imgtext

Company trading losses are computed in the same way as trading profits. Where the adjusted trading profit figure is a loss, the trade profit assessment in the corporation tax computation will be nil. This guidance note gives an overview of the different options available for relieving company trading losses.

Companies may have a number of potential options for relieving trading losses in a particular year and it is important to consider the best utilisation of losses in light of the company’s commercial objectives and in choosing the option that gives the most tax efficient result. Effective loss planning is particularly important when the rates of corporation tax vary from one financial year to another so that losses are relieved against profits which would otherwise be charged at the highest rates (or marginal rates) of tax. There is often more flexibility in this regard in a group scenario.

For more information, see the Loss planning guidance note and a summary of corporation tax losses and the ways in which they can be used is set out in

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Self assessment ― amendments and corrections

Self assessment ― amendments and correctionsOnce a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the

14 Jul 2020 13:37 | Produced by Tolley Read more Read more

Bare trusts ― income tax and CGT

Bare trusts ― income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax

14 Jul 2020 15:34 | Produced by Tolley Read more Read more

Furnished holiday lets

Furnished holiday letsThis guidance note sets out the qualifying conditions for a property let to be treated as a furnished holiday let (FHL) for tax purposes and the subsequent tax implications.Whether or not a property qualifies as an FHL can make an important difference to the taxation

14 Jul 2020 11:46 | Produced by Tolley Read more Read more