Company property business loss (UK corporation tax)
A UK company’s qualifying property business loss is generally set against its total profits of the same accounting period; an unused amount can generally be carried forward for relief against future total profits while the same property business continues, subject to statutory conditions. Corporate relief differs from the usual individual property-loss carry-forward rule, and group and special cases require separate consideration.
Worked example
A company has a qualifying £12,000 UK property loss and £8,000 other total profits in the same period. Assuming the general rules and no other adjustments, £8,000 is relieved in the current period and £4,000 remains for carry-forward.
Common mistake
Assuming a company property loss can never reduce other profits of the same period, or automatically applying the individual rule to a company.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |