Skip to main content
Find a member Join
Loss carry-back rule extended for businesses

Chancellor Rishi Sunak has confirmed that businesses which have been "pushed into a loss-making position" due to the coronavirus pandemic (both incorporated and unincorporated) will see the trading loss carry-back rule temporarily extended from one to three years.

Unincorporated businesses and companies that are not members of a corporate group will be able to obtain relief for up to £2m of losses in each of 2020–2021 and 2021–2022.

Companies that are members of a corporate group will be able to obtain relief for up to £200,000 of losses in each of 2020–2021 and 2021–2022 without any group limitations.

Companies that are members of a corporate group will be able to obtain relief for up to £2m of losses in each of 2020 – 2021 and 2021–2022, however, this will be subject to a £2m cap across the group as a whole.

More information can be viewed in a comprehensive 2021 Budget summary, on this page

Last updated 25 March 21