If my 2003 profits are £5k, my 2004 losses are £10, my 2005 profits are 3.5K - are my losses c/fwd 6.5K or 1.5K as far as the Revenue is concerned?
Sorry but I only do this once a year and my memory is failing!
Thanks for any help.
Mel
Melanie Gregory
Replies (3)
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Not really enough info but..
Assuming no associated companies and no NCDs then you wouldn't have carried back any of the 2004 losses to 2003 as there would have been no tax payable in 2003 (profits <£10k). You will have to relieve all of the 2005 profits even though there would again be no tax. So losses c/f are probably £6.5k. Your 2004 computation should show what you did with the loss.
For Peter's benefit
Companies can carry back losses by making a claim under s393A1b but... they must claim relief against the profits of the same AP as that in which the loss arose first - unlike individuals, who can choose.
Companies can also carry back DIII deficits as well, but only against DIII income.