Finance (No. 2) Act 2017

F (No. 3) A 2010

182 (1) In paragraph 10 of Schedule 9 to F(No.3)A 2010 (interest), the new Part A1 to be inserted into Schedule 54 to FA 2009 is amended as follows.

(2) In paragraph A1 (interest on tax repaid as a result of carrying back a non-trading deficit on company’s loan relationships)—

(a) in sub-paragraph (1)(c) for “or 459(1)(b)” substitute “, 459(1)(b) or 463B(1)(b)”, and

(b) in sub-paragraph (2) for “or 459(1)(b)” substitute “, 459(1)(b) or 463B(1)(b)”.

(3) After paragraph A2 insert—

“A2A(1) This paragraph applies where—

(a) a company has profits arising in an accounting period (“the earlier period”),

(b) the company ceases to carry on a trade in a later accounting period (“the later period”),

(c) on a claim under section 45F of CTA 2010 (terminal losses), the whole or any part of a loss incurred in the trade has been set off for the purposes of corporation tax against the profits of the earlier period,

(d) the earlier period does not fall wholly within the period of 12 months immediately preceding the later period, and

(e) a repayment falls to be made of corporation tax paid for the earlier period or of income tax in respect of a payment received by the company in that period.

(2) So much of the repayment mentioned in sub-paragraph (1)(e) as falls to be made as a result of the claim under section 45F does not carry repayment interest.

(3) But sub-paragraph (2) does not apply (and, accordingly, the amount mentioned in that sub-paragraph carries repayment interest) after the expiry of 9 months from the end of the later period.”

(4) In paragraph A3 (interest on tax repaid as a result of a claim under section 77 of TIOPA 2010) in sub-paragraph (4) after “A4” insert “or A5”.

(5) After paragraph A4 insert—

“A5(1) This paragraph applies where—

(a) a company has profits arising in an accounting period (“the middle period”),

(b) the company ceases to carry on a trade in a later accounting period (“the later period”),

(c) on a claim under section 45F of CTA 2010 (terminal losses), the whole or any part of a loss incurred in the trade has been set off for the purposes of corporation tax against the profits of the middle period,

(d) the middle period does not fall wholly within the period of 12 months immediately preceding the later period,

(e) as a result of the claim under section 45F, an excess or increased excess arises in the middle period as described in section 72 of TIOPA 2010 (amounts of unrelieved foreign tax),

(f) on a claim under section 77 of that Act, credit for the whole or any part of the excess is allowed against corporation tax in respect of an accounting period before the middle period (“the earlier period”) and,

(g) a repayment falls to be made of corporation tax paid for the earlier period or of income tax in respect of a payment received by the company in that period.

(2) So much of the repayment mentioned in sub-paragraph (1)(g) as falls to be made as a result of the claim under section 77 does not carry repayment interest.

(3) But sub-paragraph (2) does not apply (and, accordingly, the amount mentioned in that sub-paragraph carries repayment interest) after the expiry of 9 months from the end of the later period.”