Corporation Tax Act 2010 section 45E

Re-application of section 45B if loss remains after previous application

Section 45E deals with what happens when a trade loss that has been carried forward to a later accounting period under section 45B has not been fully used against trade profits in that period, allowing the unused portion to continue rolling forward.

• Where a trade loss carried forward under section 45B is not fully used against trade profits in the period it was carried forward to, the unused portion can be carried forward again to the next accounting period.
• The company must continue to carry on the same trade in the next accounting period for this further carry-forward to apply.
• The section 45B rules then re-apply to the remaining unused loss, treating the next accounting period as the new target period for relief against trade profits.
• The company may claim for any part of the remaining loss not to be relieved against trade profits of the further period, preserving flexibility over how and when the loss is used.