Part 4Loss relief
Chapter 2Trade losses
Carry forward of trade loss relief
45Carry forward of trade loss against subsequent trade profits
1
This section applies if, in an accounting period, a company carrying on a trade makes a loss in the trade.
2
Relief for the loss is given to the company under this section.
3
The relief is given for that part of the loss for which no relief is given under section 37 or 42 (“the unrelieved loss”).
4
For this purpose—
a
the unrelieved loss is carried forward to subsequent accounting periods (so long as the company continues to carry on the trade), and
b
the profits of the trade of any such period are reduced by the unrelieved loss so far as that loss cannot be used under this paragraph to reduce the profits of an earlier period.
5
In this section and section 46 references to profits of the trade are references to profits of the trade chargeable to corporation tax.
6
Relief under this section is subject to restriction or modification in accordance with provisions of the Corporation Tax Acts.