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Guys, can clarify this?
When a co. makes a loss in curent year and has no other sorces of income,i.e. TOTAL PROFITS = 0 (nil). So is it allowed I carry back the trading loss to previous CAPs (i.e. 24 months) ?
The general rule:
Carry back relief
Any trading loss remaining after a current year claim can be carried back.
Under carry back loss relief, trading losses are set off against:
• total profits (before deduction of QCDs)
• of the previous 12 months
• on a LIFO (last in first out) basis.
A carry back claim can only be made if a claim for current year loss relief
has been made first.
The carry back claim:
• is optional
• must be made within two years of the end of the lossmaking accounting
period.Your statement of “The general rule” is correct! Your original statement, however refers to a 24 month carry back which is wrong!! The carry back period is 12 months from the beginning of the accounting period of loss. In a terminal loss situation,however a loss of the last 12 months of trading may be carried back 36 months from the beginning of the accounting period of loss
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