Loss relief deductions allowance

Where the company has set brought forward losses (including those in respect of group relief claims) against profits in the period, a Loss Relief Deductions Allowance report will be included as part of the company’s computation.

Relief for brought forward losses may be restricted unless the loss relief deductions allowance is stated on the computation.

For tax losses brought forward to an accounting period, the corporate loss restriction generally allows a 100% deduction against profits up to the value of the £5m deductions allowance and a 50% deduction against profits exceeding the allowance.

Group relief claims

  • If the company is a member of a deductions allowance group, the deductions allowance is shared amongst the group members.

  • The group is required to nominate one of its members to submit a statement known as the ‘group allowance allocation statement’ specifying the amount of the allowance allocated to each company.

  • The nominated company may submit the statement, as a PDF attachment, with its company tax return for the period.

Deductions allowance for the period

Deductions allowance for the period will be £5,000,000, apportioned for short periods. The value may be edited where the full allowance for the period is not available.

Allocated to trading profits

Enter a figure in this box to declare the amount of loss relief deductions allowance allocated to trading profits. The amount entered should be sufficient to support loss relief claims where trading losses brought forward are set against trading profits in the period.

Allocated to non-trading profits

Enter a figure in this box to declare the amount of loss relief deductions allowance allocated to non-trading profits. The amount entered should be sufficient to support loss relief claims where non-trading losses brought forward are set against non-trading profits in the period.

Allocated to chargeable gains

Enter a figure in this box to declare the amount of loss relief deductions allowance allocated to chargeable gains. The amount entered should be sufficient to support loss relief claims where capital losses brought forward are set against chargeable gains in the period.

To exclude this report, delete the figure in the Deductions allowance for the period box or select Exclude on the Loss Relief Deductions Allowance report on the computation preview.