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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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One of my client company accounts is been showing a loss

Resolved Question:

Hi,
One of my client company accounts is been showing a loss for the last five year. The deficit is growing every year.
Is there time limit that a company can keep carrying forward a deficit?
Regards
Ron
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi.

A single company's trading losses can only be relieved against any trading profits it makes so there is no time limit as far as HMRC are concerned provided returns are submitted to disclose the losses. Take a look here for information on company losses.

It's more likely that the bank will pull the plug on a company that continues to make losses as it will eventually run out of money.

I hope this helps but let me know if you have any further questions.
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