Concern over impact of company capital loss changes

The changes intended to limit the losses that the largest companies can set against capital gains will create additional obligations for all companies says the Association of Taxation Technicians.

The corporate income loss restriction introduced in April 2017 is to be extended to include carried forward capital losses from 1 April 2020 as announced by the chancellor of the exchequer Philip Hammond in the autumn Budget. Companies making capital gains will only be able to use carried forward capital losses to offset up to 50% of those gains subject to a deductions allowance of up to £5m a year.

Jon Stride co-chair of the ATT’s technical steering group said: ‘We do not want to see companies that should be unaffected by this restriction having additional and totally unnecessary reporting requirements.

‘We have expressed previously our concerns to HMRC regarding the existing compliance obligations for businesses of...