Govt announces extended loss relief measures

Date: 22nd April 2009

The government has today (April 22nd) announced measures to extend trading loss relief carry-back for small businesses.

Under the scheme, loss-making firms will be allowed to reclaim taxation paid on profits over the last three years - a move which Chancellor Alistair Darling estimates could help 100,000 firms to offset their losses.

The Chartered Institute of Taxation (CIOT) welcomed the decision, claiming that it would help small firms survive the recession.

Ian Menzies-Conacher, chairman of the CIOT's technical committee, commented: "The further extension is very valuable to many small businesses in the current economic climate and shows that the government have been listening to representations made by the professional bodies."

Original proposals made by the government regarding loss relief measures had only covered a certain timeframe.

Another measure announced today was a 2p per litre rise in fuel duty, which will take place in September, followed by 1p per litre above indexation increases each April over the next four years.