News – 02.12.24
2024 US tax year end planning for Americans in the UK
The 2023 US tax year ends on 31 December 2023, so now is a good time to consider whether there is anything that you can do to minimise your US tax exposure for 2023 and begin preparing for 2024. … Read more
Insight – 02.12.24
Budget 2024: Reform to the taxation of carried interest
Find out more about the changes coming for capital gains tax and carried interest. … Read more
Upcoming event – 10.12.24
Funding innovation in the technology sector: Are the government doing enough?
Join us for an exclusive roundtable breakfast to explore the question of whether the government are doing enough to support innovation in the technology sector. … Read more
Find us quickly
130 Wood Street, London, EC2V 6DL
enquiries@buzzacott.co.uk T +44 (0)20 7556 1200
One of several measures announced in the Budget is an extension to the trading loss carry-back rules from one year to three years for otherwise-viable UK businesses which have been pushed into a loss-making position. This will be available to both incorporated and unincorporated businesses and aims to help businesses which have suffered from the pandemic, leading to trading losses in the short term.
This temporary measure provides additional flexibility in utilising trading losses for businesses which were successful and profitable before the start of the pandemic and have since turned loss making. The purpose of this measure is to provide cashflow benefit to these businesses in reclaiming taxes paid for two additional years. It should be noted that it applies to trading losses only.
This measure will have effect for company accounting periods ending in the period 1 April 2020 to 31 March 2022 and for tax years 2020/21 and 2021/22 for unincorporated businesses. There are limits that apply:
Where losses exceed this limit for both incorporated and unincorporated businesses, the balance of the loss not carried back to a previous accounting period will be carried forward and set against future profits of the same trade.
Businesses will need to ensure that the loss claims are made correctly through their tax returns by the relevant deadlines to claim their tax repayments.
If your business will be able to make a claim, submit your tax return as soon as possible to obtain the earliest repayment.
One of several measures announced in the Budget is an extension to the trading loss carry-back rules from one year to three years for otherwise-viable UK businesses which have been pushed into a loss-making position. This will be available to both incorporated and unincorporated businesses and aims to help businesses which have suffered from the pandemic, leading to trading losses in the short term.
This temporary measure provides additional flexibility in utilising trading losses for businesses which were successful and profitable before the start of the pandemic and have since turned loss making. The purpose of this measure is to provide cashflow benefit to these businesses in reclaiming taxes paid for two additional years. It should be noted that it applies to trading losses only.
This measure will have effect for company accounting periods ending in the period 1 April 2020 to 31 March 2022 and for tax years 2020/21 and 2021/22 for unincorporated businesses. There are limits that apply:
Where losses exceed this limit for both incorporated and unincorporated businesses, the balance of the loss not carried back to a previous accounting period will be carried forward and set against future profits of the same trade.
Businesses will need to ensure that the loss claims are made correctly through their tax returns by the relevant deadlines to claim their tax repayments.
If your business will be able to make a claim, submit your tax return as soon as possible to obtain the earliest repayment.
If you have an enquiry about how the Budget affects you, your business or charity, complete the form below and one of our experts will be in touch with you.
We use necessary cookies to make our site work. We’d also like to set optional analytics and marketing cookies. We won't set these cookies unless you choose to turn these cookies on. Using this tool will also set a cookie on your device to remember your preferences.
For more information about the cookies we use, see our Cookies page.
Please be aware:
— If you delete all your cookies you will have to update your preferences with us again.
— If you use a different device or browser you will have to tell us your preferences again.
Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
Analytics cookies help us to understand how visitors interact with our website by collecting and reporting information anonymously.
Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.