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3 year loss carry back rules

Client has projected losses for y/e 31/12/09. Claimed group relief in 2008.

Under FA09, losses in period can be carried back up to 3 years, subject to £50k cap, ie full carry back to 2008, £50k to 2007 and £50k to 2006.

Can I just confirm that there is no need to withdraw group relief claim in 2008  to utilise £50k carry back to 2007 and 2006?

Or do they have to carry back to 2008 in order to make £50k carry backs to 2007 and 2006?


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12th Oct 2009 13:39

Yes, but (or No, but)

No need to withdraw earlier group relief claim. BUT the £50K is a limit on the total that can go back by more than 12 months. In otherwords, a carry back claim affects all three years (single claim) against all available CT profits in 2008, followed by up to £50,000 against 2007 then 2006 - taking 2007 first and only going back when all gone. You must of course set loss first against any other income and gains in 2009.

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12th Oct 2009 14:06

Thanks, Rebecca

Thanks for that, Rebecca. I'd forgotten that you could only get one loss amount of £50k.

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