A temporary loss carry-back scheme has been introduced to support customers in the current uncertain economic environment.
Businesses expecting to make a loss in either the 2020 year or the 2021 year can use that loss to offset profits they made the year before. In other words, they can carry the loss back one year to the preceding income year. This can be done before the loss year return is filed.
You must let us know if you are going to use the loss carry-back scheme. You can do this in the ‘More' section of your income tax account in myIR.
A loss carry back can be claimed in your income tax return when you file it or by amending the return if filed. Refunds will be processed a lot faster if you use myIR. Please ensure that you have a bank account loaded against the INC tax type for refunds.
If you do not elect to carry your loss back, it will still be available to carry forward as normal.
If you elect to carry back only part of the loss now, you can carry back the remainder any time later in the year up until your return is due. Any balance remaining can be carried forward.