There will be fundamental changes to the rules for setting off corporate tax losses starting on 1 April 2017.
For losses incurred on or after 1 April 2017, companies will be able to use carried forward losses against profits from other income streams or from other companies within a group.
However, large companies with profits in excess of £5m will only be allowed to offset brought forward losses against 50% of the amount of profit in each future period.
The proposals in detail –to Corporation Tax –changes to the Corporation tax rate
A single corporation tax rate of 20% has applied since 1 April 2015 regardless of the level of the company’s profits.
In the summer 2015 Budget it was announced that this would reduce to 19% in April 2017.
The Chancellor has now announced that this will now be reduced to 17% from 1 April 2020.