Business Tax - Relief for company losses
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Hello
Please help....this may sound like a stupid question but what is the purpose of relieving losses? I can understand the current year in that you'll be reducing the PCTCT amount but what about Carry Back? Is it mandatory to carry back once current year has been relieved? And carry forward: if you choose to just carry forward, a large loss has the potential to significantly reduce the amount of CT to be paid in the future which appears to be against HMRC's favour. The text book doesn't really explain any of this. Does anyone else think this?
Many thanks
Please help....this may sound like a stupid question but what is the purpose of relieving losses? I can understand the current year in that you'll be reducing the PCTCT amount but what about Carry Back? Is it mandatory to carry back once current year has been relieved? And carry forward: if you choose to just carry forward, a large loss has the potential to significantly reduce the amount of CT to be paid in the future which appears to be against HMRC's favour. The text book doesn't really explain any of this. Does anyone else think this?
Many thanks
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Re:Business Tax - Relief for company losses
BTW, I am referring to the FTC's textbook....thanks0