Loss reliefs

A company within the charge to corporation tax can have any of the following types of losses:

1. •

   trading losses

2. •

   property losses

3. •

   non-trading loan relationship losses

4. •

   non-trading losses on intangible fixed assets, and

5. •

   capital losses

To the extent they are relevant a company must also consider qualifying charitable donations and excess management expenses, which, whilst not actually losses, are treated in a similar way to losses. For more on these, see Practice Note: Qualifying charitable donations and excess management expenses.

A company which forms part of a loss relief group or consortium may also be able to surrender certain losses to a member of that group or consortium, for which, see: Corporation tax group relief—overview.

The Finance (No 2) Act 2017 reformed the rules on what companies can do with carried-forward corporation tax income losses. The reforms, which took effect for accounting periods beginning on or after 1 April 2017, have resulted in two sets of rules that govern the use of carried-forward income losses—one for losses arising on or after 1 April 2017 (post-1 April 2017 losses)) and