Policy paper

Changes to the Corporation Tax reform of loss relief rules

This measure amends the reform of loss relief rules to correct a defect in the legislation that may lead to excessive relief being allowed.

Documents

Draft legislation

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Explanatory notes

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

Loss reform modernised the UK’s loss relief regime by increasing the flexibility over the profits that carried-forward losses can be relieved against whilst ensuring that businesses pay tax in each accounting period that they make substantial profits.

This measure includes amendments to ensure that the legislation works as intended and will protect revenue by preventing relief for carried-forward losses being claimed in excess of that intended. The same amendments also have the effect of bringing the treatment of Basic Life Assurance and General Annuity Business (BLAGAB) profits in line with the original policy intent.

These and other amendments made by this measure will ensure the policy objective is met.

Published 6 July 2018