Corporation Tax Act 2010 Explanatory Notes

Section 960: Restrictions on use of reliefs

2867.This section sets out the results if this Chapter applies. It is based on section 116 of ICTA.

2868.Subsection (1) is the rule about the firm’s losses. The partner company’s share of the firm’s trading loss is available only against its share of profits from the same trade. This means that a claim may be made under section 45 (losses carried forward) but not under section 37 (relief against total profits).

2869.Subsection (3) is the rule about the firm’s profits. It isolates the partner company’s share of the profits from reliefs that would otherwise be available (unless they are losses of the firm’s trade available in accordance with subsection (1)). So the partner company may not set against its share of the firm’s profits either:

  • trading losses of another trade (paragraph (a) of the subsection); or

  • other reliefs (paragraph (b) of the subsection).

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