The government has announced that losses arising from 1 April 2017 when carried forward will have increased flexibility and can be set against the total taxable profits of a company and its group members (‘loss relaxation’). For all carried-forward losses, whenever they arose, companies will be able only to use the losses against up to 50% of profits (‘loss restriction’). Each standalone company or group will be entitled to a £5 million annual allowance. Profits within the allowance will not be restricted, ensuring 99% of companies are unaffected by the restriction.
For further information visit gov.uk or drop us a line and we'd be more than happy to help.
