Can I carry forward losses to reduce corporation tax?

Yes, trading losses can generally be carried forward and offset against future profits of the same trade, reducing your Corporation Tax bill in later years, and in some cases losses can also be carried back one year to reclaim tax already paid. The rules around how much can be offset and against which types of profit have restrictions for larger companies, though most small businesses aren't affected by these caps. Loss relief claims need to be made correctly on your Company Tax Return, so it's worth having an accountant handle the calculation to make sure you're using the most beneficial option available.