Autumn Budget 2018 – Corporate capital loss restriction

Currently, a company can carry forward unused capital losses and set these against future capital gains.

From 1 April 2020, the use of brought-forward capital losses will be restricted for companies with over £5m of gains. The restriction limits the use of losses to 50% of capital gains over and above £5m.

The restriction will mirror the restrictions that exist for brought forward trading losses but will only effect a small percentage of companies.