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Tax rules relaxed for Covid-19 16 Jul 2020

Some of the tax rules have been relaxed to help people cope with Covid-19.

There is some flexibility in filing returns.

Usually, if the shareholders of a company change by more than 51 percent then any tax losses are forfeited. Covid-19 might make it necessary to change shareholding and these rules have been modified, which may allow for a change of more than 51% provided the business remains essentially the same. Check with us before you change the shareholding in your company.

If you make a tax loss in either the 2020 tax year or the 2021 tax year, you can carry the loss backwards to the previous year, if it helps you. Normally, you can only carry losses forward and set them off against future years’ profits.

 

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