Finance Act 1996

1 (1) This paragraph applies where a claim is made under section 83(2)(a) of this Act for the whole or any part of the deficit to be set off against profits of any description for the deficit period.

(2) Subject to the following provisions of this paragraph—

(a) the amount to which the claim relates shall be set off against the profits of the company for the deficit period that are identified in the claim; and

(b) those profits shall be treated as reduced accordingly.

(3) Any reduction by virtue of sub-paragraph (2) above shall be made—

(a) after relief has been given for any loss incurred in a trade in an earlier accounting period; and

(b) before any relief is given against profits for that period either—

(i) under section 393A(1) of the Taxes Act 1988 (trading losses set against profits for the same or preceding accounting periods); or

(ii) by virtue of any claim made, in respect of a deficit for a subsequent period, under section 83(2)(c) of this Act.

(4) Relief shall not be given by virtue of a claim under section 83(2)(a) of this Act against any ring fence profits of the company within the meaning of Chapter V of Part XII of the Taxes Act 1988 (petroleum extraction activities).