Revenue eBrief No. 150/20

06 August 2020

July Jobs Stimulus - Accelerated loss relief for companies

Section 11 of the Financial Provisions (Covid-19) (No. 2) Act 2020 introduced a new section 396D in the Taxes Consolidation Act 1997 ("TCA"). Section 396D TCA provides for a temporary acceleration of corporation tax loss relief for accounting periods affected by the Covid-19 pandemic and related restrictions. It allows companies to estimate their trading losses for certain accounting periods and to carry back up to 50% of those losses against chargeable profits of the preceding accounting period on an accelerated basis.

A new Tax and Duty Manual - Part 12-03-05 - has been published to provide guidance on the operation of section 396D TCA, as well as to provide information to companies on how they may make a claim for the relief.