On the making of a claim, a company which has made a trading loss for an accounting period can set the loss against its total profits for that accounting period (CTA 2010, s. 37(3)(a)). This is referred to as sideways relief.

A company’s total profits for an accounting period are the sum of its income chargeable to corporation tax and its chargeable gains for that period, both after taking account of any relief due (CTA 2010, s. 4(3)) .

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