The Corporation Tax Act was introduced in Ireland in 1976, and s16 of that Act provided for relief for trading losses. The relief has evolved, most notably in 2001, when the concept of “relevant trading losses” was introduced in a new s396A Taxes Consolidation Act 1997 and rules for surrendering such losses by means of group relief were established, and again in 2003, when specific time limits for claiming relief for a “relevant trading loss” were introduced. Further changes were made in 2023 to the definition of a “relevant trading loss”. However, the original premise continues: companies that incur a loss in their trade may utilise that loss in the current year, carry it back to the previous year or carry it forward to the next year.
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