Changes were made in the Finance Bill 2016 to the way in which Limited Companies are taxed and how their losses are treated

Corporation tax rates
The main rate of corporation tax is currently 20% and this rate will continue for the Financial Year beginning on 1 April 2016.
The main rate of corporation tax will then be reduced as follows: 19% for the Financial Years beginning on 1 April 2017, 1 April 2018 and 1 April 2019.
17% for the Financial Year beginning on 1 April 2020.

Corporate tax loss relief
The government will introduce two reforms to corporate tax losses from April 2017.
Losses arising on or after 1 April 2017 will be useable, when carried forward, against profits from other income streams or other companies within a group.
However, from 1 April 2017, companies will only be able to use losses carried forward against up to 50% of their profits above £5 million. For groups, the £5 million allowance will apply to the group. This will appear in Finance Bill 2017.

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