Finance (No. 2) Act 2017 (c. 32)

SCHEDULES

SCHEDULE 4 U.K. Relief for carried-forward losses

PART 11 U.K. Minor and consequential amendments

CTA 2009 U.K.

128 U.K. CTA 2009 is amended as follows.

129 U.K. In section 39(3) (losses of mines, quarries and other concerns)—

(a) omit “and”, and

(b) after “(group relief)” insert “ and Part 5A of that Act (group relief for carried forward losses) ”.

130 (1) Section 364 (group relief claims involving impaired or released consortium debts) is amended as follows. U.K.

(2) In subsection (4) at the end insert “, and

“group relief” means—

(a) group relief under Part 5 of CTA 2010 (see section 97(2) of that Act), and

(b) group relief for carried-forward losses under Part 5A of CTA 2010 (see section 188AA(4) of that Act).”

(3) In subsection (5) for “or 144” substitute “ , 144 or 188DH ”.

131 U.K. In section 371 (group relief claims involving impaired or released consortium debts: interpretation) for the definition of “group relief” substitute—

““group relief” has the meaning given by section 364(4),”.

132 U.K. In section 387 (treatment of deficit on basic life assurance and general annuity business: introduction) in subsection (1) for “Chapter 16” substitute “ Chapters 16 and 16A ”.

133 (1) Section 1048 (treatment of deemed trading loss under section 1045) is amended as follows. U.K.

(2) In subsection (1) at the end insert “ (“the deemed loss-making period”) ”.

(3) In subsection (3)—

(a) before paragraph (a) insert—

“(za) the deemed loss-making period begins before 1 April 2017”,

(b) in paragraph (a) for “the accounting period” substitute “ the deemed loss-making period ”.

(4) After subsection (4) insert—

“(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.”

(5) In subsection (5) for “Subsection (4) is” substitute “ Subsections (4) and (4B) are ”.

134 U.K. In section 1056 (amount of trading loss which is “unrelieved”)—

(a) in subsection (2)(c) after “Part 5” insert “ or Part 5A ”, and

(b) in subsection (3)(a) after “45” insert “ , 45A or 45B ”.

135 U.K. In section 1062(2) (restriction on losses carried forward where R&D tax credit claimed)—

(a) for “section 45” substitute “ sections 45, 45A and 45B ”, and

(b) omit “trading” in the second place that word occurs.

136 U.K. In section 1116 (meaning of “the actual reduction in tax liability”) in subsection (4) after “Part 5” insert “ or Part 5A ”.

137 U.K. In section 1153 (amount of loss which is “unrelieved”)—

(a) in subsection (1)(c) after “Part 5” insert “ or Part 5A ”, and

(b) in subsection (2)(a) after “45” insert “ , 45A, 45B ”.

138 U.K. In section 1158(2) (restriction on losses carried forward where land remediation tax credit claimed)—

(a) for “section 45” substitute “ sections 45, 45A and 45B ”, and

(b) omit “trading” in the second place that word occurs.

139 U.K. In section 1201 (film tax credit claimable if company has surrenderable loss) in subsection (2B)(b) after “45” insert “ or 45B ”.

140 U.K. In section 1216CH (television tax credit claimable if company has surrenderable loss) in subsection (4)(b) after “45” insert “ or 45B ”.

141 U.K. In section 1217CH (video game tax credit claimable if company has surrenderable loss) in subsection (4)(b) after “45” insert “ or 45B ”.

142 U.K. In section 1217KA (theatre tax credits: amount of surrenderable loss) in subsection (3)(b) after “45” insert “ or 45B ”.

143 U.K. In section 1217RH (orchestra tax credits: amount of surrenderable loss) in subsection (3)(b) after “45” insert “ or 45B ”.

144 U.K. In section 1223 (carry forward expenses of management and other amounts), in subsection (1)(b), after sub-paragraph (i) (as inserted by paragraph 6(2)(b)) insert—

“(ii) section 269ZD of CTA 2010 (restrictions on deductions from total profits) has effect for the accounting period, or

(iii)”.