0% Corp Tax & Losses b/fwd

0% Corp Tax & Losses b/fwd

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Sorry if this one's been answered before. I have a company that has made £5K profit - so no Corp Tax is due. If I have £20K losses b/fwd do I carry the £20K forward to next year or do I have to set the £5K off against the losses.

Thanks v much.
Jules

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By AnonymousUser
20th Aug 2005 19:18

Set off
Trading losses carried forward are automatically set against the first available trading profits, regardless of rate of tax otherwise applying to those profits (it is only after losses set off that you calculate the tax). Yes, £5k of the losses are wasted, but that is unfortunate.

Any profits available for distribution? If so, consider dividends now to reduce future NCD rates.

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