Finance Act 2021 detailed new rules around taxation for companies providing for a temporary extension to the loss carry back legislation for trading losses for both incorporated and unincorporated businesses.

The new legislation means those eligible can save money on taxation - which is as important as ever as businesses navigate the post-covid landscape.

But what has changed under the new rules, and what has stayed the same? Read on for a full breakdown of the new legislation to find out what it means for you and your clients.

Company taxation – three-year extension

The present ruling means that company trading losses that have been accrued can be carried back one year without restriction. For accounting periods ending between 1 April 2020 and 31 March 2022, there is a three-year extension. Losses against profits from the most recent years must be set against, before carrying back to previous years.