OT21056B | Corporation Tax Ring Fence: Losses and Group Relief: Losses Carried Forward: Losses arising after 1 April 2017: Non-decommissioning losses arising after 1 April 2017: Ring fence trade

CTA10/S303B and S303D

Where a company makes a non-decommissioning loss in a ring fence trade that arises on or after 1 April 2017, and where the loss is not used in that accounting period, carried back or surrendered for group relief it is carried forward under CTA10/S303B to the next accounting period and set against profits of the ring fence trade.

When set against profits of the same ring fence trade, relief for the losses is not restricted under CTA10/PART7ZA. However, the restriction will apply if the losses are set against profits of a related activity under CTA10/S304(5) (CTA10/S269ZB(3)).

Relief for losses under this section is given automatically against profits of the ring fence trade. No election is needed.

Any loss not used in the period is carried forward to subsequent accounting periods to be set against profits of the ring fence trade under CTA10/S303D.