Part 4Loss relief

Chapter 2Trade losses

Relief in loss-making period and carry back relief

40Ring fence trades: extension of periods for which relief may be given

(1)

This section applies if—

(a)

in an accounting period a company makes a loss in a ring fence trade (as defined in section 162 of CAA 2001),

(b)

the accounting period is an accounting period F1for which any allowances under section 164 or F2by virtue of section 416ZA of CAA 2001 are made to the company in respect of decommissioning expenditure, and

(c)

not all the loss is a terminal loss (see section 39(3) above).

(2)

Sections 37(3)(b) and 38(1) and (3) have effect in relation to the loss (so far as it is not a terminal loss) as if the references to 12 months were references to 3 years.

(3)

But if the loss exceeds F3the sum of the allowances mentioned in subsection (1)(b), subsection (2) applies in relation to the loss only so far as it does not exceed F4that amount.

F5(3A)

In this section “decommissioning expenditure” has the meaning given by section 330C.

(4)

This section is subject to section 41.