Mark McLaughlin looks at company trading loss carry back claims and what happens if the company wishes to change the amount of losses to be carried back.
Many trading companies are struggling in this difficult financial climate. Where a company makes a trading loss, there are several possible ways for that trading loss to be relieved, subject to various conditions and restrictions.
Losses carried back
For example, if trading losses exceed profits of the same accounting period, the company may claim to carry back the excess against total profits of preceding accounting periods, i.e., those falling wholly or partly within the 12-month period ending immediately before the start of the loss-making accounting period.
However, a company cannot claim to carry back losses without first setting them off against profits of the current period. In addition,
