Policy paper

Changes to the Corporation Tax reform of loss relief rules

This measure amends the reform of loss relief rules to correct a defect in the legislation that may lead to excessive relief being allowed.

• From: HM Revenue & Customs
• Published: 6 July 2018

Documents

Changes to the Corporation Tax reform of loss relief rules

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Draft legislation

PDF, 91.6 KB, 6 pages

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Explanatory notes

PDF, 164 KB, 5 pages

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Details

Loss reform modernised the UK’s loss relief regime by increasing the flexibility over the profits that carried-forward losses can be relieved against whilst ensuring that businesses pay tax in each accounting period that they make substantial profits.

This measure includes amendments to ensure that the legislation works as intended and will protect revenue by preventing relief for carried-forward losses being claimed in excess of that intended. The same amendments also have the effect of bringing the treatment of Basic Life Assurance and General Annuity Business (BLAGAB) profits in line with the original policy intent.

These and other amendments made by this measure will ensure the policy objective is met.

Published 6 July 2018