8.2.1 Overview

A company’s trading loss for an accounting period is calculated in the same way as its profit.

If a company makes a trading loss, s. 36(3) of CTA 2010 states that it can only claim relief for losses incurred whilst it was still within the charge to corporation tax (CT). To be within the charge to CT, the company must either be UK resident, or if it is non-resident, it must carry on a trade in the UK through a permanent establishment. No relief is available for a trade that is carried on wholly outside the UK even if the company is UK resident during that accounting period.

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