Policy paper

Corporation Tax: reform of loss relief

This tax information and impact note will provide for a more flexible loss relief regime.



These reforms provide for a more flexible loss relief regime by allowing losses arising from 1 April 2017 to be set against profits of different activities within a company and against profits across a group. They also restrict the amount of profit that can offset through carried-forward losses to 50%, subject to a group-wide allowance of £5m.

Draft legislation has also been published.

Published 5 December 2016