PBR 2008: Corporation tax changes

The planned increase in the small companies rate from 21% to 22% has been delayed until 1 April 2010. This was previously to take effect from 1 April 2009.

A maximum £50,000 of trading losses incurred in accounting periods ended between 28 November 2008 and 23 November 2009 can be carried back three years, starting with the latest year.

Where companies are connected under loan relationship rules, a creditor company which releases a debtor company from a trade debt cannot claim a deduction for the loss. However, the debtor company could be taxed on the “profit”.

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