Another Finance Bill was published today and as expected, it covers the areas that were carried over from the previous Finance Bill which were not enacted due to the calling of the Election. These include the corporate tax loss carried-forward rules.

 Previously, losses could be set against other profits in the period in which they arose or surrendered as group relief or carried back one year. After that, they could only be offset against profits of the same trade.

The changes mean that losses arising on or after 1 April 2017 can be used more flexibly. For these, losses carried forward can be offset against total profits in future years or surrendered as group relief. 

But there are still some restrictions. The amount of profit against which these losses can be used is capped at a maximum of 50% of the company's total profits above an annual allowance for a group (or company if not part of a group) of £5 million. And for old losses (those arising before 1 April 2017) the old rules still apply except that the new loss cap applies to these as well.

So more flexible certainly, but definitely more complex too.