Corporation Tax: trading losses: general: relief for losses carried forward: finality of figures
Where a loss has been stated in a return and has become final, the fact that the loss is shown as (or part of) a carry forward amount in computations included with a later return does not create a second opportunity to enquire into the amount of the loss. An enquiry into the amount of a loss that has become final may be possible following a discovery determination (CTM95500 onwards).
An enquiry may be opened into a later return reflecting the use of a carried forward loss in a later accounting period. Examples include
- a dispute about whether a trade has continued or whether it has ceased and a new trade commenced, and
- the effect of the relevant liabilities restriction (CTM06250) following a company reconstruction.
See CTM06300 onwards about the disallowance under CTA10/S673 of trading losses following a change in ownership of a company.