For entrepreneurs and financial managers, loss relief within corporate income tax (vpb) is an important tool to optimise tax burdens. However, from 2025, there will be some regulatory changes. In this blog, we explain what loss relief means, what will change, and how smart software, such as TriFact365, can help with efficient processing.
What is loss relief?
Loss relief means that a company is allowed to offset tax losses with profits from other years. This can be done in two ways:
- Carry back: Set off loss against previous year’s profit.
- Carry forward: offsetting losses against future profits.
This scheme prevents companies from paying tax in bad years on profits from previous years, while now making losses.
What will change in 2025?
From 2025, new rules will apply to the concurrence of loss relief and remission gains. This is relevant when part of a debt is remitted. Until now, this could lead to a situation where part of the remission gain was still taxed despite there being losses.
The new regulation provides that:
- The remission gain must first be offset against the loss in the year of remission.
- Then with any past losses still to be set off.
- The remaining amount of remission gain is then fully exempted from tax.
This change avoids double taxation and ensures fairer treatment of companies in financial difficulties.
How TriFact365 can help
Correct and up-to-date records are crucial for proper loss settlement. TriFact365, a smart digital invoice processing solution, helps companies to:
- Recognise, book and archive invoices faster.
- As a result, keeping insight into costs and revenues per period.
- Increase the likelihood of providing error-free financial data to the accountant or tax advisor.
By combining computerised accounting with up-to-date tax knowledge, companies can take full advantage of loss relief and other tax benefits.
The changes to loss relief for corporation tax from 2025 are designed to solve tax bottlenecks and treat companies more fairly. Make sure your records are in order and that you anticipate these changes in time. With tools like TriFact365, this becomes a lot easier.
