Corporation Tax Act 2009 section 47

Losses calculated on same basis as profits

Section 47 establishes that trading losses must be calculated using the same rules as trading profits, ensuring consistency in how both are measured for corporation tax purposes.

• Trading losses are calculated using exactly the same rules as trading profits for corporation tax purposes.
• This ensures a consistent and symmetrical approach — the same accounting and tax principles apply whether the result is a profit or a loss.
• The rule is subject to any specific provision elsewhere in the tax legislation that states otherwise.
• In practice, this means all the rules about what income is included, what deductions are allowed, and how amounts are timed apply equally when computing a loss.