Corporation tax trading losses: temporary three-year carry-back

As part of measures to support businesses during the pandemic, the Chancellor announced a temporary three-year carry back relief on corporation tax trading losses. Paul Davies FCA, tax writer at Croner-i, explains

As one of many measures designed to assist businesses suffering economic harm from the coronavirus outbreak, Finance Bill 2021, clause 18 and Schedule 2 (subject to enactment) proposes a temporary extension, to three years, of the normal 12-month trading loss carry-back period. The temporary extension applies to trading losses arising in accounting periods ending in the two-year period 1 April 2020 to 31 March 2022.

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