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News – 19.12.24

Buzzacott advises Rose Street Partners on its investment in Kenwood Damp Proofing PLC

Discover how Buzzacott supported Rose Street Partners on its investment in Kenwood Damp Proofing PLC … Read more

Insight – 18.12.24

Start-up guide: Everything you need to know about Tronc schemes to set your new hospitality business up for success

One challenge for new hospitality businesses is the management of tips and service charges. … Read more

Upcoming event – 16.01.25

VAT on Private School fees training

This in-depth, interactive training seminar is designed to provide school administrators, bursars, finance officers, accountants, and trustees with tailored support and expert insights on the practical implementation of VAT. … Read more

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enquiries@buzzacott.co.uk T +44 (0)20 7556 1200

Spring Budget 2020: Corporate capital loss restriction

For accounting periods ending on or after 1 April 2020 companies making chargeable gains will only be able to offset up to 50% of those gains using carried-forward (allowable) capital losses.

The measure will effect large companies that pay Corporation Tax and have carried-forward capital losses which plan to be used to offset chargeable gains accruing on or after 1 April 2020.

Transitional arrangements will apply where an accounting period straddles the above date.

A Corporate Income Loss Restriction (CILR) for carried-forward income losses was introduced in 2017 which included an allowance that the first £5 million of profits per group could be offset with carried-forward losses before the 50% restriction is applied. The steps for computing the CILR will be amended to facilitate the capital loss restriction and enable the sharing of the £5 million deductions allowance which forms part of the CILR.

What should you do?

If you are a large company for corporation tax purposes and have carried forward capital losses, then please come and speak to us about the applicability of the new measures.

Shriya Dheir

+44 (0)20 7710 3126
DheirS@buzzacott.co.uk

The measure will effect large companies that pay Corporation Tax and have carried-forward capital losses which plan to be used to offset chargeable gains accruing on or after 1 April 2020.

Transitional arrangements will apply where an accounting period straddles the above date.

What should you do?

If you are a large company for corporation tax purposes and have carried forward capital losses, then please come and speak to us about the applicability of the new measures.

Read more on the Budget here.

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