---
title: Carrying losses forward and back
description: Carrying losses forward and back
---
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2. [Corporation Tax and Year-End](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb)
3. [Losses, Rates and Reliefs](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#losses-rates-and-reliefs)
# Carrying losses forward and back
## You can carry back or carry forward losses the amount of tax your company pays
Trading losses can be used in more than one way, and the choice affects when you feel the benefit.
### The choices
- Carry back: set against the previous 12 months' profits for a repayment of tax already paid
- Carry forward: set against future profits of the company automatically, until used
Restrictions exist for very large amounts (broadly over £5 million of carried-forward losses), which will not affect most owner-managed companies.
### Which is best
Carry back puts cash in the bank now. Carry forward can be worth more if future profits will fall into a higher effective tax rate band. We model both when preparing your return.
💡 **Good to know:** Loss claims have time limits, generally two years from the end of the loss-making period. We track these as part of your year-end work, so no claim lapses.
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