Corporation tax trading losses can generally be offset against other profits of the same accounting period, carried forward to offset future profits, or carried back to be offset in the previous accounting period. Due to the coronavirus pandemic, the carry back period is extended to three years for losses realised in accounting periods ending between 1 April 2020 and 31 March 2022. In general, this will be claimed via the corporation tax return, but HMRC has just issued a reminder that there is an alternative method available for smaller losses.

If the loss doesn’t exceed £200,000, the company can make the claim via an online form. This can be done as soon as the loss can be accurately established after the end of the accounting period. This means that where there is a delay in filing the corporation tax return, the relief can be claimed immediately. The form is available via the Government Gateway, and can be accessed here (log in details required). Evidence of the loss, e.g. management accounts will need to be provided.