Corporation Tax Act 2009

112 (1) Amend section 396 (Case VI losses) as follows.

(2) In subsection (1)—

(a) for “under Case VI of Schedule D” substitute “under or by virtue of a relevant provision”, and

(b) for “under that Case” substitute “charged under or by virtue of a provision to which section 834A (miscellaneous charges) applies”.

(3) For subsection (2) substitute—

“(2) In this section “relevant provision” means any provision to which section 834A applies, except section 761(1)(b)(ii) (offshore income gains).”

(4) After subsection (2) insert—

“(2A) Subsection (2B) applies to any loss made by a company in a transaction if—

(a) the transaction was of such a nature that, if any profits had arisen from it, the company would have been liable to corporation tax in respect of the profits under Case VI of Schedule D for an accounting period ending before 1 April 2009, and

(b) the transaction—

(i) did not fall within section 34, 35 or 36 (lease premiums etc), and

(ii) was not a disposal made after 31 March 2007 to which Chapter 5 of Part 17 (offshore funds) applied.

(2B) So far as relief for the loss has not previously been given, the loss is to be treated as a loss to be set off against income in accordance with subsection (1).”

(5) For the title substitute “Losses from miscellaneous transactions”.