Corporation Tax Act 2010 section 66

Relief for losses made in overseas property business

Section 66 sets out how tax relief is given when a company makes a loss in its overseas property business, allowing that loss to be carried forward against future profits of the same business.

• An overseas property business covers all activities a company carries on to generate income from land outside the United Kingdom, including one-off transactions entered into for that purpose.
• Where the overseas property business makes a loss in an accounting period, that loss is carried forward to subsequent accounting periods and set against future profits of the same overseas property business — but not against chargeable gains.
• The loss is applied to the earliest available subsequent period first, and only the portion not already used against an earlier period's profits can reduce a later period's profits.
• Relief under this section may be restricted or modified by other provisions of the Corporation Tax Acts, such as the rules on contributions to LLPs or the write-off of government investment in a company.