Finance Act 2015

PART 2 Consequential amendments

FA 1998

2 In Schedule 18 to FA 1998 (company tax returns, assessments and related matters), after Part 9D insert—

“PART 9E Designation of losses as unrestricted losses for the purposes of Chapter 3 of Part 7A of the Corporation Tax Act 2010

83Y Introduction

(1) This Part of this Schedule applies to the designation of losses within sub-paragraph (2) as unrestricted losses by a banking company under section 269CH of the Corporation Tax Act 2010 (losses covered by carried-forward loss allowance).

(2) The losses mentioned in sub-paragraph (1) are losses which, in relation to any accounting period, would (in the absence of that section) be relevant carried-forward losses.

(3) Expressions used in this Part of this Schedule and in Chapter 3 of Part 7A of the Corporation Tax Act 2010 have the same meaning in this Part of this Schedule as they have in that Chapter.

83YA Designation to be made in company tax return

(1) A designation to which this Part of this Schedule applies must be made by being included in the company’s tax return for the accounting period for which the company makes a deduction in respect of the losses.

(2) It may be included in the return originally made or by amendment.

83YB Identification of losses

Where a company designates any relevant carried-forward loss in a company tax return, the return must specify—

(a) the amount of the loss, and

(b) whether the loss is—

(i) a pre-2015 carried-forward trading loss,

(ii) a pre-2015 carried-forward non-trading deficit, or

(iii) pre-2015 carried-forward management expenses.

83YC Amendment or withdrawal of designation

A designation to which this Part of this Schedule applies may be amended or withdrawn by the company only by amending its company tax return.”

CTA 2009

3 In section 1223 of CTA 2009 (carrying forward expenses of management and other amounts), in subsection (1)—

(a) the words after “because” become paragraph (a), and

(b) after that paragraph insert “, or

(b) in the case of amounts falling within subsection (2)(c), section 269CC of CTA 2010 (restriction on deductions for management expenses) has effect for the accounting period.”

CTA 2010

4 In section 1 of CTA 2010 (overview of Act), in subsection (3)—

(a) for “Parts 8” substitute “Parts 7A”, and

(b) before paragraph (a) insert—

“(za) banking companies (see Part 7A),”.

5 In Schedule 4 to CTA 2010 (index of defined expressions), at the appropriate place insert—

“banking company (in Part 7A)

section 269B”;

“building society (in Chapter 3 of Part 7A)

section 269CN”;

“company tax return (in Chapter 3 of Part 7A)

section 269CN”;

“group (in Part 7A)

section 269BD”;

“HMRC (in Chapter 3 of Part 7A)

section 269CN”;

“partnership (in Chapter 3 of Part 7A)

section 269CN”;

“pre-2015 carried-forward management expenses (in Chapter 3 of Part 7A)

section 269CC(4)”;

“pre-2015 carried-forward non-trading deficit (in Chapter 3 of Part 7A)

section 269CB(4)”;

“pre-2015 carried-forward trading loss (in Chapter 3 of Part 7A)

section 269CA(4)”;

“relevant carried-forward loss (in Chapter 3 of Part 7A)

section 269CN”;

“relevant non-trading profits (in Chapter 3 of Part 7A)

section 269CN”;

“relevant profits (in Chapter 3 of Part 7A)

section 269CN”;

“relevant regulated activity (in Part 7A)

section 269BB”;

“relevant trading profits (in Chapter 3 of Part 7A)

section 269CN”;

“start-up period (in Chapter 3 of Part 7A)

section 269CG”.

TIOPA 2010

6 (1) In Part 9A of TIOPA 2010 (controlled foreign companies), in Chapter 21 (management), section 371UD (relief against sum charged) is amended as follows.

(2) In subsection (2), after “relevant allowance” insert “(but see subsection (9))”.

(3) At the end insert—

“(9) A company which is a banking company (within the meaning of Part 7A of CTA 2010) for the relevant corporation tax accounting period may not make a claim under subsection (2) in respect of a relevant allowance consisting of—

(a) a pre-2015 carried-forward non-trading deficit (within the meaning of Chapter 3 of Part 7A of that Act), or

(b) pre-2015 carried-forward management expenses (within the meaning of that Chapter).”