Corporation Tax Loss Relief - Get to Grips with the New Rules
April 2017 saw major reforms to the corporation tax loss rules coming into force. The new rules fundamentally change how loss relief works - and apply to all companies, regardless of size. The new rules introduce a 'cap' on carry forward loss relief - but combine this with an increased flexibility for post April 2017 losses that is only becoming relevant in practice now.
Not only do these changes impact how companies can access relief for carried forward losses, but they bring with them a host of new compliance requirements with which businesses and their advisers need to familiarise themselves. The Government has been clear that these changes are likely to have a significant impact on businesses within the charge to UK corporation tax - both in terms of potential cost and compliance.
But the change does not stop here. In 2018, the then government said it would be extending the loss restriction to capital losses as well - with April 2020 earmarked for when these further reforms would take effect. Draft legislation has been produced - and all we are now waiting on is the March 2020 Budget to confirm that these further changes to corporation tax loss relief are going ahead.
Aimed at manager and senior level delegates, this course - presented by tax barrister Sarah Squires - will focus on developing an understanding of the new rules: what they mean, the changes to the existing loss rules and the new loss compliance measures. It will also provide an overview of the various anti-avoidance measures embedded within the draft legislation and outline how the 2017 reforms are being extended to capital loss relief.
What You Will Learn
The course will cover the following:
- How has loss relief changed?
- What claims do I need to make to use losses?
- What is the group deductions allowance, and how does it apply?
- What is the 'cap' on loss relief, and how does it apply?
- What happens on a corporate acquisition?
- What reporting obligations do I have?
- How will capital losses be affected by the reforms - the latest update
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