Company capital loss (UK corporation tax)
An allowable capital loss of a company is generally set against its chargeable gains of the same accounting period. A remaining loss is normally carried forward against later chargeable gains, rather than deducted from trading or other income. Statutory restrictions and group rules can affect availability. This differs from the wider options for a qualifying company trading loss.
Worked example
In one accounting period a company has £30,000 chargeable gains and a £45,000 allowable capital loss. Assuming no restrictions, £30,000 offsets the gains and £15,000 is carried forward against eligible later chargeable gains; it is not deducted from the company’s trading income.
Common mistake
Using the remaining capital loss against trading income or assuming the same relief choices as for a trading loss.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |