Section 62: Relief for losses made in UK property business
236.This section provides relief for losses arising from a UK property business. It is based on sections 6(4), 392A and 834(2) of ICTA.
237.“UK property business” is defined in section 205 of CTA 2009. This definition is reproduced here in order to avoid the need to cross-refer:
“A company’s UK property business consists of—
(a)every business which the company carries on for generating income from land in the United Kingdom, and
(b)every transaction which the company enters into for that purpose otherwise than in the course of such a business.”
238.Subsections (4) and (5) provide that any unused losses are to be carried forward and treated as UK property business losses of later periods. In other words such unused losses may be set against total profits of later periods.
239.Subsection (6) provides that relief is subject to restriction or modification in accordance with provisions of the Corporation Tax Acts. Examples of such restrictions or modifications are to be found in:
Sections 56 (restriction on relief for limited partners), 57 (meaning of “contribution to the firm”) and 58 (meaning of “limited partner”);
Chapter 7 of this Part (write off of government investment in a company).
