Corporation Tax Act 2010 section 62

Relief for losses made in UK property business

Section 62 provides relief for losses that a company makes in its UK property business, allowing those losses to be deducted from total profits in the current period and, where unused, carried forward to future periods subject to a claim.

• A loss from a UK property business is relieved by deducting it from the company's total profits for the same accounting period.
• Any loss not used in the current period or surrendered as group relief is carried forward to the next accounting period, provided the company continues the UK property business.
• Relief for a carried-forward loss in a later period requires a formal claim, which may cover all or part of the unused amount, and must be made within two years after the end of that later period (unless HMRC allow further time).
• The relief is subject to restrictions or modifications elsewhere in the Corporation Tax Acts, such as rules limiting relief for limited partners or provisions dealing with write-off of government investment.