4A

Subsection (4B) applies if—

a

the deemed loss-making period begins on or after 1 April 2017,

b

the company—

i

begins to carry on a trade in the deemed loss-making period which it continues to carry on in the following accounting period, or

ii

begins to carry on a trade in an accounting period after the deemed-loss making period, and

c

the trade is derived from the research and development in relation to which the relief mentioned in subsection (1) was obtained.

4B

In that case, so far as—

a

the company has not obtained relief in respect of the trading loss under any other provision, and

b

the loss has not been surrendered under Part 5 of CTA 2010 (group relief) (surrender of relief to group or consortium members),

the trading loss is to be treated as if it were a loss of that trade brought forward under the relevant provision (see subsection (4C)) to the relevant period (see subsection (4D).

4C

In subsection (4B) “the relevant provision” is—

a

section 45A(4) of CTA 2010 if—

i

the trade is not a ring fence trade within the meaning of Part 8 of CTA 2010 (see section 277 of that Act), and

ii

relief under section 37 of CTA 2010 would not be unavailable by reason of section 44 of that Act for a loss (assuming there was one) made in the trade in the relevant period (see subsection (4D), and

b

section 45B(2) of CTA 2010 if either of the conditions in paragraph (a) is not met.

4D

In subsection (4B) and (4C) “the relevant period” means—

a

in a case where the company began the trade in the deemed loss-making period and continued to carry on the trade in the following accounting period, that following accounting period, and

b

in a case where the company began the trade in an accounting period after the deemed loss-making period, the accounting period in which the company began the trade.