Corporation Tax Act 2010 section 61

Unrelieved losses brought forward

Section 61 allows a corporate member of a limited liability partnership (LLP) to carry forward trade losses that were previously restricted under section 59 and treat them as arising in a later accounting period for relief purposes.

• Where trade losses of a corporate LLP member were denied relief in an earlier period because of the section 59 capital contribution cap, those losses can be carried forward and treated as arising in the current period for the purposes of sideways relief against total profits, carry-forward relief against total profits, group relief, and group relief for carried-forward losses.
• The carried-forward loss is only available in the current period to the extent that the company is still carrying on the trade as a member of the LLP at some point during that period.
• A loss that was already treated as arising in a previous period under this section, and for which relief was or could have been given had a claim been made, cannot be carried forward again — preventing the same loss from being used twice.
• A loss is also excluded from this carry-forward treatment if relief for it has already been given under any other provision of the Corporation Tax Acts outside of this section.