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HMRC internal manual

COTAX Manual

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Claims / reliefs: loss and non-trading deficits carry-back: legislation: loss carry-back / late payment interest

The table below gives a brief explanation of what the legislation relevant to this subject contains.

Section Explanation
   
S37(3)(b) CTA 2010 Allows a company to carry back a trade loss incurred on or after 2 July 1997:
  • that cannot be utilised against profits arising in the AP in which the loss is incurred
  • for 12 months preceding the loss period.
A terminal loss can be carried back for up to three years.    
  87A(6) TMA 1970 Rules for determining the amount of late payment interest payable when a trade loss is carried back to an AP not falling wholly within the previous 12 months.