New rules on company loss relief from April 2017

Relief for company losses

New rules that allow greater flexibility in the way that companies obtain relief for losses now apply to losses incurred from 1 April 2017.

These rules have been introduced to encourage companies to diversify as the losses may be available to offset against profits of another activity in a future period and even those of a company in the same group.

The new rules were consulted on last Summer and are included in the latest Finance Bill.

Although there will be greater flexibility for “new” losses arising after 1 April 2017, “old” trading losses incurred prior to that date will continue to be restricted and will only be available to be offset against future profits from the same trade.,  The new rules are very complicated and we will work with you to ensure that your company obtains relief for losses in the most advantageous way.

Update – 26th April 2017 – Please note that in view of the impending election in June this measure has now been dropped from the Finance Bill 2017.  It may of course resurface in the next parliament depending on which party wins.

If you think these new rules apply to you and you wish to discuss, please do not hesitate to Contact Us