OT21056C - Corporation Tax Ring Fence: Losses and Group Relief: Losses Carried Forward: Losses arising after 1 April 2017: Non-decommissioning losses arising after 1 April 2017: Total profits

CTA10/S303C

Where a company has carried forward a post 1 April 2017 non-decommissioning loss to a subsequent accounting period, and has set off as much of the loss as it is able to against profits of its ring fence trade under CTA10/S303B or CTA10/S303D, it may make a claim under CTA10/S303C to set the remaining, unrelieved loss against its total profits of the accounting period.

Such a claim is optional, and must be made within two years of the end of the accounting period in which it wishes to use the losses.

If a claim is made, relief is given by deducting the unrelieved loss from the company’s total profits of the accounting period. The amount of relief for the loss is restricted under CTA10/PART7ZA (CTA10/S269ZD(3)(h)).

If any amount of the loss still remains unrelieved, it is carried forward to the next accounting period under CTA10/S303D, where it can then be used against profits of the ring fence trade under that same section. Further claims under CTA10/S303C may be made in that subsequent accounting period, if part of the loss remains unrelieved after the loss has been deducted from profits of the ring fence trade in that same period.

Trade becomes small and negligible

A company may not make a claim under CTA10/S303C if its trade became small or negligible in the loss making period, or if it becomes small or negligible in any period after the loss making period but before the loss is used.

Claims may also not be made under CTA10/S303C if the trade is not carried on commercially.