Capital Allowances Act 2001

[F1 Restriction on losses carried forward U.K.

Textual Amendments

F1 Sch. A1 inserted (with effect in accordance with Sch. 25 para. 9 of the amending Act) by Finance Act 2008 (c. 9), Sch. 25 para. 5

19 (1) For the purposes of the relieving provisions (see paragraph 20), the company's loss from the qualifying activity for a chargeable period in which it claims a first-year tax credit is treated as reduced by the amount of the loss surrendered. U.K.

(2) For the purposes of this Schedule, the amount of the loss surrendered is—

(a) where the amount of first-year tax credit mentioned in paragraph 2(1)(a) is claimed, the whole of the surrenderable loss for that period, and

(b) where less than that amount is claimed, a corresponding proportion of the surrenderable loss for that period.

20 U.K. The relieving provisions are—

(a) where the qualifying activity is a trade or a furnished holiday lettings business and paragraph 21 or 22 does not apply, section 393 of ICTA (relief of trading losses against future profits),

(b) where the qualifying activity is managing the investments of a company with investment business, [F2 section 1223 of CTA 2009 (carrying expenses forward)],

(c) where the qualifying activity is a [F3 UK property business] (other than a furnished holiday lettings business) and paragraph 21 does not apply, section 392A(2) of [F4 ICTA] (relief of [F5 UK property business losses] against future profits), and

(d) where the qualifying activity is an overseas property business and paragraph 21 does not apply, section 392B of [F6 ICTA] (relief of overseas property losses against future profits).

Textual Amendments

F2 Words in Sch. A1 para. 20(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(10)(a) (with Sch. 2 Pts. 1, 2)

F3 Words in Sch. A1 para. 20(c) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(10)(b)(i) (with Sch. 2 Pts. 1, 2)

F4 Word in Sch. A1 para. 20(c) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(10)(b)(iii) (with Sch. 2 Pts. 1, 2)

F5 Words in Sch. A1 para. 20(c) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(10)(b)(ii) (with Sch. 2 Pts. 1, 2)

F6 Word in Sch. A1 para. 20(d) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(10)(c) (with Sch. 2 Pts. 1, 2)

21 (1) This paragraph applies if the qualifying activity is a [F7 UK property business] or an overseas property business, and in a chargeable period— U.K.

(a) the company's loss in carrying on that activity is a loss treated under section 432AB(3) of ICTA, for the purposes of section 76 of that Act, as expenses payable which fall to be brought into account at Step 3 in subsection (7) of that section,

(b) an amount falls to be carried forward to a succeeding chargeable period under section 76(12) of that Act (carrying forward unrelieved expenses on income), and

(c) the company claims a first-year tax credit for the chargeable period.

(2) The total amount which falls to be carried forward to a succeeding chargeable period under section 76(12) of ICTA is treated as reduced by the amount of the loss surrendered.

Textual Amendments

F7 Words in Sch. A1 para. 21(1) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 521(11) (with Sch. 2 Pts. 1, 2)

22 (1) This paragraph applies where the qualifying activity is life assurance business and the profits of that business are charged to tax under the I minus E basis. U.K.

(2) For the purposes of section 76 of ICTA, the total amount which may—

(a) be carried forward under subsection (12) of that section from a chargeable period in which the company claims a first-year tax credit, and

(b) be brought into account for the next chargeable period in accordance with Step 7 in subsection (7) of that section,

is treated as reduced by the amount of the loss surrendered.]