[CTM05260] CTM05260 – Corporation tax: restriction on relief for carried-forward losses: examples 3 and 4: companies using relevant deductions only
The following examples show the steps taken in computing the amount of losses that can be used in a case where the only restricted carried-forward losses are relevant deductions (CTM05020), which can be set against total profits. These could be post-1 April 2017 trading losses or NTLRDs carried forward and available for relief against total profits, or they could be management expenses, property business losses or non-trading losses on intangible fixed assets from any period.
Company C has an accounting period ending 31 March 2020. In that period, its profits are as follows: