FREE CONSULTATION - CALL US TODAY! 0203 189 1736|info@pmaaccountants.co.uk

Losses in the first years of trade

2019-11-01T21:10:34+00:00November 6th, 2019|Categories: Business|Tags: , , |

If a new business makes losses in its first few years of trading, there may be scope to carry back those losses and set them off against other income received in the years prior to commencement of the trade. This is commonly referred to as 'early trade losses relief' and it applies to losses sustained in the tax year in which a trade is first carried on, or in any of the next three years. The provisions may be particularly useful to new businesses as they may be used to generate a cash boost in the form of a [...]

Changes to company carry-forward of losses confirmed

2019-09-01T12:01:22+01:00March 22nd, 2017|Categories: Limited Company, Taxation|Tags: , , |

Initially announced at the time of the 2016 Budget and following a period of consultation, Finance Bill 2017 contains provisions to reform the tax treatment of certain types of carried-forward loss for corporation tax purposes with effect from 1 April 2017. Losses arising from 1 April 2017, when carried forward, will have increased flexibility and can be set against the total taxable profits of a company and its group members (referred to as the 'loss relaxation'). For all carried-forward losses, whenever they arose, companies will be able only to use the losses against up to 50% of profits (known [...]