The way in which a company can claim tax relief on a trading loss is about to change. Currently, a trading loss in a company can be carried back or set sideways against other income (rent, bank interest etc.) reducing the tax due or wiping it out completely. If there is any loss left it is then carried forward but can only set against the profits from the same trade. This can result in trading losses being carried forward and never used.
However, from this April the carry forward rules change. Trading losses will soon be able to be carried forward and set against any profits of the business, and for businesses with multiple trades/income streams this could result in significate tax savings.
There is of course a restriction for large business which restricts the loss relief to 50%, but these only apply to a company with profits in excess of £5 million.
Why not call us to see if your company will benefit from these changes, 01642 244 090.Share