On 24 August 2021, UK HMRC updated the policy paper providing guidance on the Extended Loss Carry Back for Businesses. A temporary extension of periods to which trade losses may be carried back was provided as part of the Finance Act 2021, including that losses made in 2020-21 and 2021-22 may be carried back up to three years, instead of the standard one year. Losses are required to be set off against profits of the most recent year first, and total losses carried back to the second and thir…