Corporate capital loss restriction from April 2020
29 October 2019
The corporate income loss restriction (CILR) regime is to be extended to include a corporate capital loss restriction (CCLR). This means that from 1 April 2020 capital losses carried-forward can only be used to offset 50% of any net chargeable gains, subject to any allocation of a group’s annual £5m deductions allowance. There will be no change to the basic rule that capital losses can only shelter chargeable gains. Chargeable gains can also be sheltered by income losses carried-forward apart from pre-April 2017 trading losses.