Sarah Bradford examines the opportunities for unincorporated businesses and companies to take advantage of the temporary extension to the loss carry-back rules.
Reduced demand for products and services and interruptions to supply chains during the Covid-19 pandemic have meant that many businesses suffered trading losses.
To help loss-making businesses utilise their losses to generate much-needed tax repayments, both incorporated and incorporated businesses will, for a temporary period, be able to carry back losses for three years, rather than the usual one, and set them against their trading profits of the same trade. This will be particularly helpful where the business has suffered a loss in two consecutive years due to the pandemic, offering the possibility of carrying the loss for the second year backwards.
However, it should be noted that the
