C1C2Part 4Loss relief
Pt. 4 excluded (14.7.2022) by Energy (Oil and Gas) Profits Levy Act 2022 (c. 40), s. 1(5)(e) (with ss. 15(1), 16(1))
Chapter 2Trade losses
F1Relief in loss-making period and carry back relief
S. 37 cross-heading substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 9
39Terminal losses: extension of periods for which relief may be given
1
This section applies if—
a
a company ceases to carry on a trade, and
b
the company has made a terminal loss in the trade.
2
Sections 37(3)(b) and 38(1) and (3) have effect in relation to the terminal loss as if the references to 12 months were references to 3 years.
3
The following are terminal losses made in the trade—
a
the whole of any loss made by the company in the trade in an accounting period that begins during the final 12 months, and
b
the overlapping proportion of any loss made by the company in the trade in an accounting period that ends, but does not begin, during the final 12 months.
4
The overlapping proportion is the same as the proportion that the part of the accounting period falling within the final 12 months bears to the whole of the accounting period.
5
“The final 12 months” means the period of 12 months ending when the company ceases to carry on the trade.
6
This section is subject to section 41.
Pt. 4 modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Risk Transformation (Tax) Regulations 2017 (S.I. 2017/1271), regs. 1(1), 10