|Calculating Taxable Profits|
|How Much Tax?|
|Minimising the Tax Bill|
|Where to Get Help|
Losses can sometimes be used to reduce the corporation tax bill. However, their use is subject to strict rules, to prevent tax evasion.
4.1 Trading losses can be offset against any other profits (including capital gains) made in the same accounting period.
4.2 It may be possible for other companies within the same group to make use of a company’s trading losses.
4.3 Capital losses can only be offset against capital gains.
They cannot be offset against trading income.