Loss Relief Deductions Allowance

Where the company has set brought forward losses against profits in the period, a Loss Relief Deductions Allowance report should be included as part of the company’s computation.

Relief for brought forward losses may be restricted if the loss relief deductions allowance is not included on the computation.

Deductions allowance

Loss relief Deductions Allowance is £5,000,000, but should be reduced for short periods and where there are claims by multiple companies in the same group.

The box is automatically populated with the £5,000,000 allowance, apportioned for short periods, but you can amend this figure if you so wish.

Trading profits deduction allowance

The figure in this box should be sufficient to support loss relief claims where trading losses brought forward must be set against trading (rather than total) profits in the period.

The box will be automatically populated with the sum of the trade losses brought forward set against trade profits, but you can amend this figure from within the Trade section and Trade losses if you so wish.

Non-trading profits deduction allowance

The figure in this box should be sufficient to support loss relief claims where non-trading losses brought forward are set against non-trading (rather than total) profits in the period.

The box will be automatically populated with the sum of the brought forward deficits set against non-trading income, but you can amend this figure from within the Non-trade Loan relationships section and Deficits if you so wish.

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.

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