HMRC internal manual

Corporate Intangibles Research and Development Manual

CIRD68020 - Land Remediation Relief: Tax Credit: restriction of losses carried forward



Amount of loss carried forward

The company’s trading loss, or property business loss, carried forward and set off against profits from those sources in later accounting periods is reduced by the amount of the loss surrendered (ICTA88/S392A and ICTA88/S393).

Amount of the loss surrendered

The amount of the loss surrendered is:

  • where the maximum amount of land remediation tax credit is claimed (see CIRD68025), the whole of the ‘qualifying land remediation loss’ (see CIRD68005 for definition) for that accounting period, or
  • where the amount of land remediation tax credit claimed is less than the maximum amount that could be claimed, a corresponding proportion of the qualifying land remediation loss for that accounting period.


A Ltd has a trading loss of £100,000 in an accounting period, of which £75,000 is a qualifying land remediation loss. It has no other income or gains in the accounting period, claims a payable tax credit of £8,000 and makes no other loss or group relief claims for the period.

The amount of land remediation tax credit payable equates to a qualifying land remediation loss of £50,000 (£50,000 x 16% = £8,000 - see CIRD68015).

The loss available to carry forward is therefore £50,000 (£100,000 less £50,000 qualifying land remediation loss surrendered).