Corporation Tax Act 2010 section 303B

Carry forward of losses against subsequent profits

Section 303B allows a company with an unrelieved non-decommissioning loss from a ring fence trade (oil and gas extraction activities) to carry that loss forward and set it against future profits of the same trade.

• Applies to non-decommissioning losses arising in accounting periods beginning on or after 1 April 2017 in a ring fence trade
• Where part or all of a loss has not been relieved through other available routes — sideways relief against total profits, extended loss relief, or group relief — the unrelieved amount is carried forward to the next accounting period
• Relief is given by reducing the ring fence trade profits in the later period by the amount of the unrelieved loss, provided the company continues to carry on the same trade and makes a profit in that later period
• The relief remains subject to any restrictions or modifications imposed by other provisions of the Corporation Tax Acts