Trading losses and anti-avoidance

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

Summary of trading losses anti-avoidance rules

There are several anti-avoidance rules involving the utilisation of trading losses which are summarised below:

Conditions	Consequences
Major change in nature or conduct of trade of the company, or the company’s activities become small or negligible (without a change in ownership of the company)	Trading losses arising after the change in ownership cannot be relieved against profits arising before the change and losses carried forward cannot be relieved against trading profits or total profits. Relief is lost completely. See below
Post-1 April 2017 change in ownership and major change in the business of the company	Losses eligible for carried forward relief against total profits are not available against post-change of ownership profits, including terminal losses. Relief is lost for five years. See below
Post-1

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