Restriction on losses carried forward
17(1)For the purposes of section 392A of the Taxes Act 1988 (relief of Schedule A losses against future Schedule A losses), a company’s Schedule A loss for a period in which it claims a land remediation tax credit is treated as reduced by the amount of the loss surrendered.
(2)For the purposes of section 393 of the Taxes Act 1988 (relief of trading losses against future trading profits), a company’s trading loss for a period for which it claims a land remediation tax credit is treated as reduced by the amount of the loss surrendered.
(3)Sub-paragraph (4) applies if in an accounting period—
(a)a company’s Schedule A loss is a loss treated under section 432AB(3) of the Taxes Act 1988 as an amount of expenses of management under section 76 of that Act,
(b)an amount falls to be carried forward to a succeeding accounting period under section 75(3) of that Act (carrying forward expenses of management and charges on income where such expenses and charges exceed amount of profits from which deductible), and
(c)the company claims a land remediation tax credit for the accounting period.
(4)Where this sub-paragraph applies, the amount which falls to be carried forward to a succeeding accounting period under section 75(3) of the Taxes Act 1988 is treated as reduced by the amount of the loss surrendered.
(5)For the purposes of this paragraph the amount of the loss surrendered is—
(a)where the maximum amount of land remediation tax credit was claimed, the whole of the qualifying land remediation loss for that period;
(b)where less than the maximum amount was claimed, a corresponding proportion of the qualifying land remediation loss for that period.
The “maximum amount” here means the amount specified in paragraph 15(1).