Section 396D TCA 1997 provides for a temporary acceleration of corporation tax loss relief for any accounting periods affected by the COVID-19 pandemic and related restrictions. Companies are allowed to estimate their trading losses for certain accounting periods and carry back up to 50 percent of those losses against chargeable profits of the preceding accounting period on an accelerated basis.

According to Revenue’s COVID-19 support scheme preliminary statistics (as at 19 August 2021) 247 companies have claimed accelerated loss relief, with total claims amounting to €474 million. The median claim of a company with trading profits is €60,824.

Further information on the temporary acceleration of corporation tax loss relief is available in Revenue guidance.

Self-employed individuals can also claim to have losses and certain unused capital allowances carried back and deducted from their profits for the preceding tax year of assessment, subject to a €25,000 limit. This relief allows self-employed individuals make interim claims based on estimates.

As at 19 August, 357 individuals had claimed accelerated loss relief, with total claims amounting to €3.98 million.

Further information on the temporary income tax measures for self-employed individuals is available in Revenue guidance, and sections 395A, 395B and 395C TCA 1997.