Policy paper

Corporation Tax: bank loss relief restriction

This Tax Information and Impact Note is about restricting the proportion of banks’ annual taxable profit that can be offset by carried forward losses to 50%.

Documents

Details

The measure will restrict the proportion of banks’ annual taxable profit that can be offset by carried forward losses to 50%.

The restriction will apply to carried forward:

  • trading losses
  • non-trading loan relationship deficits
  • management expenses

The restriction will take effect from 1 April 2015 and will only apply to reliefs accruing prior to this date. The targeted anti-avoidance rule which forms part of the measure will apply to arrangements entered into on or after 3 December 2014.

A draft legislation for this measure has been published at Draft legislation: Corporation Tax - bank loss relief restriction.

Published 3 December 2014