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HMRC internal manual

Oil Taxation Manual

Transferable Tax History - Losses in year

When a field makes a loss in the year this will not be carried back or forward in the tracked profits as it is not subject to the formal CT loss rules, but any loss will be netted off against the total tracked profits of the field.

For example if Company A is tracking profits of a field, the tracked profits at the end of a 6 year period where both profits and losses have been made will show:

Year Profit (loss) from field Total Net Tracked Profits
1 1,000 1,000
2 2,000 3,000
3 (1,500) 1,500
4 500 2,000
5 (100) 1,900

If the company then moves on to decommission it will have to work through 1900 of tracked profits before TTH can be activated