CAT / FIA FTX Syllabus E. Corporation Tax Liabilities - Loss reliefs - trade and non trade losses - Notes ^{1 / 4}

Trading losses can be:

1. Relieved against Current year total income

2. Carried back 12 months of total income

3. Carried forward against the Total income of future years

Non trading losses

1. Capital losses

   Can only be set against chargeable gains in the same or future accounting periods.

   NEVER against income nor against gains of previous accounting periods.

2. Property business losses

   - are first set off against the company's total profit of the current accounting period.

   - any excess loss is carried forward to the next period and set off against the company's total profit

   - cannot be carried back to previous periods

On cessation of trade

• Trade losses

  - any trading loss in the 12 months before cassation can be set against total profits of the cessation period and any excess carried back against total profits for 36 months

• Capital losses

  - any capital losses, which cannot be relieved in the final period of trading, will be unrelieved.

• Property business losses

  - any property business losses, which cannot be relieved in the final year, will be unrelieved.