The government has announced a temporary extension to the loss carry back rules for trading losses of both companies and unincorporated businesses.

For accounting periods ending between 1 April 2020 and 31 March 2022 losses can be carried back 3 years, capped at £2m per year for the extended 2 years.

Extended loss carry back claims must be made in the tax return for the year in which the losses arise unless they are under £200,000 in which case they can be made in writing before the tax return is submitted.

Any unused trading losses will be carried forward as normal, to offset against future profits.

If you think this applies to you please get in touch and we can review your tax position to make the most tax efficient claims for you.