A company can offset a trading loss against other profits made in the same accounting period. Any remaining losses may then be offset against the total profits of the previous 12 months. Trading losses may also be carried forward to set against the trading profits of subsequent periods.
Following the 2021 budget, trade loss carry back has been extended from the current 1 year entitlement to a period of 3 years, with losses being carried back against later years first. This extension will apply to trading losses made by companies in accounting periods ending between 1 April 2020 and 31 March 2022. Further details are given here.
The Ftax Company forms may be used to manage losses in order to reduce tax liabilities and claim tax rebates. This is done via the tax returns themselves, a trading losses worksheet, and iXBRL Computation files produced by the forms.
Further details are given in this FAQ:
How can the Ftax Company tax return be used to carry back trading losses?
There are also boxes in the Company tax return to manage losses from UK property businesses, intangible fixed assets, loan relationships, and unquoted shares. Details can be provides in the Notes section on the Profits Worksheet page which will be included with in the iXBRL Computations file.
Further details on how to declare losses in the Company tax return are give here and in in the HMRC Notes. You are recommended to read this information as it is your responsibility to complete the tax return correctly in accordance with HMRC requirements.