• Since Finance Act 2001 trading losses may only be offset against trading income for the same and immediately preceding accounting period on a € for € basis. Any unused trading loss may be offset against non-trading income, including chargeable gains, but only on a value basis.
  • For example if the company has an unused trading loss of, say, €100,000 and a chargeable gain of €100,000 the company can get relief for the loss at the rate of 12.5% against the liability on the chargeable gain. Tax due on the chargeable gain is €30,000 and the company can get loss relief of €12,500 leaving a net liability of €17,500.
  • Losses of a company on non-development land assets may be offset against chargeable gains - other than development land gains - of that company only, in the current accounting period and any unused balance can be carried forward. Losses on the disposal of development land can, however, be offset against gains arising on other assets.

September 2012

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