This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Cessation of trade: All is not ‘lost’!

By Jennifer Adams, July 2020

Jennifer Adams looks at the effect the coronavirus is having on some closed businesses.  

The coronavirus lockdown has caused serious financial distress for many businesses. Unfortunately, some of those businesses that closed will never open again.  

Terminal loss relief 

Companies ceasing to trade and having losses in the final 12 months can generally claim terminal loss relief and obtain a refund of any corporation tax paid or deduction from any tax due.  

Under this relief, losses are carried back up to three years prior to the date of cessation and offset against total profits of previous accounting periods on a ‘last in first out’ basis (i.e. the loss is carried back to the first accounting period before the loss-making period, then to the period before

This is one of our 1866 Premium articles

To see this article in full and unlock access to our complete library of 1866 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!