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Corporation tax loss carry forward use against future capital gain?

Corporation tax loss carry forward use against...

Hi, a simple question for a corporation tax expert but being personal tax biased I am not sure if it works the same way. I believe they can only be used to reduce future trading profits not CGT or rents but would welcome quick confirmation as manuals are not 100% clear.


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07th Dec 2012 12:07

CT Loss

The loss can only be set sideways in the same year.

Once carried forward, it can only be set against the same type of income: Capital loss carried forward against capital gains, trading loss carried forward against trading profits etc  

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By TaxSpud
07th Dec 2012 12:08

Thank you Brightster

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07th Dec 2012 12:25

Is it a trading loss?

I assume from your reference to only being available against future trading profits that you are talking about a trading loss, but you don't actually say.

If it's a property business loss, it is treated as a loss arising in the next accounting period (and the next, and so on, while it continues to be caaried forward), meaning that it can be set against total profits (including chargeable gains).  Similar situation for excess management charges carred forward.

EDIT: And there are other possibilities!

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07th Dec 2012 12:23

Not strictly

I think Brightster will be right as they sound like they will be trading losses, however if they are non-trading loan relationship losses or IFA non-trading losses c/fwd these can be offset against future chargeable gains.

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