Loss reliefs—overview - Lexis®PSL, practical guidance for lawyers
Losses may be carried back up to three years and set off against total profits; CTA , ss39, Non-trading loan relationship deficits can be used either. Loan relationships: non-trading deficits: claims for set-off against profits of an Claim to carry back deficit to previous accounting periods. It also covers the ability to carry forward disallowed interest expense and looks at the interest restriction return and discusses several other operational becomes impaired or is released, where that debt is not between connected companies. It looks at the tax treatment under the loan relationships rules for both debtor.
Priority between loss reliefs in loss making companies. Claimant company priority The company that sets off the losses surrendered against its total profits is known as the claimant company.
Corporation tax group relief—overview - Lexis®PSL, practical guidance
The claimant company can make a claim to set off losses surrendered by way of group relief against its total profits, broadly, only: How much group relief can be surrendered and claimed? Overlap limitation As a general limitation on all group relief claims, the maximum amount of group relief that can be claimed is limited, in summary to the lower of: There are complex rules that apply for the calculation of available losses and unrelieved profits.
For more on these rules, see Practice Note: Administration of group relief The surrendering company must consent to the losses being surrendered in writing to HMRC. The claimant company must make a claim for group relief in its tax return whether in the original return or by amendment to it and must submit a copy of the consent to surrender with the claim.
Corporation Tax Act 2010
The claim for group relief must be made within time limits set by law. The period is at least 12 months after the filing date of the claimant company's relevant tax return. For more information, see Practice Note: Procedure for claiming group relief and payments for group relief. For more information on property losses, see Practice Note: What can a company do with property losses?
Non-trading loan relationship deficits A loss referred to as a deficit arising to a company from its non-trading loan relationships in respect of an accounting period referred to as the deficit period can be set off against the company's: Non-trading loan relationships—taxation and relief.
Corporation Tax Act 2009
Non-trading intangible fixed asset losses A loss arising to a company from its non-trading intangible fixed assets in an accounting period can be set off against the company's: For more on non-trading intangible fixed assets, see Practice Note: How intangible fixed assets are taxed—basic principles.
Miscellaneous losses A company that makes a loss on a transaction, which if income had arisen from it would have given rise to miscellaneous income, must set that loss against other miscellaneous income in the same accounting period. If all or part of such a loss cannot be used in the same accounting period, the excess is carried forward and set off against miscellaneous income of the future accounting periods.
Qualifying charitable donations All companies within the charge to corporation tax can deduct qualifying charitable donations from their total profits, after all other deductions have been made, other than group relief, to reduce the total profits to zero.
Excess qualifying charitable donations are lost, unless the company is a company with investment business. For more on qualifying charitable donations, see Practice Note: Qualifying charitable donations and excess management expenses. Excess management expenses Companies with investment business can deduct their management expenses from their total profits.
The deduction must be made before any other deductions from total profits.