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Reforms to corporation tax loss relief: consultation on delivery.
HMRC and the Treasury have published a consultation on how to legislate the reforms to the loss relief rules for companies announced in the 2016 Budget and how to deal with the interactions with other areas of the corporate tax system.
The measures are:
- losses arising from 1 April 2017 can be carried forward and set against the taxable profits of different activities within a company and the taxable profits of its group members; and
- the amount of annual profit that can be relieved by carried-forward losses will be limited to 50% from 1 April 2017, subject to an allowance of £5m a group.
Responses should be emailed here by 18 August 2016.
Draft legislation will be published at the time of the autumn statement, allowing for a period of technical consultation ahead of its inclusion in the 2017 Finance Bill.
