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HMRC internal manual

Company Taxation Manual

Corporation tax: relief for losses carried forward: losses incurred before 1 April 2017

CTA10/S45, CTA10/S137 (7)

The loss available for carry-forward is:

•    the loss sustained,

less

•    any part of that amount for which relief has been allowed against current year profits or carried back to earlier under CTA10/S37 (CTM04500 onwards) or surrendered as group relief under CTA10/PART5 (CTM80100 onwards).

For accounting periods ending on or after 30 September 1993 a company does not have to make a claim to carry forward trade losses for set-off against future trading income of the same trade.

Relief is given against available trading income of subsequent accounting periods:

•         in order, and

•         without omission.

See CTM04150 about the finality of loss figures and CTM04200 about losses of a trading company going into partnership.

See CTM06300 onwards about the disallowance under CTA10/S673 of trading losses following a change in ownership of a company.