SCHEDULES
SCHEDULE 1Abolition of basis periods
PART 6Transitional provision: continuing trades etc
71Treatment of losses arising from deduction for overlap profit
1
This paragraph applies if, by virtue of a deduction for overlap profit allowed and made under this Part of this Schedule (see paragraphs 68 and 69(2) and Step 3 of the calculation in paragraph 70(2))—
a
the trader makes a loss for the tax year 2023-24 where the trader would (but for the deduction) have made a profit, or
b
the trader makes a loss for the tax year 2023-24 that is greater than it would have been had the deduction not been made.
2
Sections 89 to 91 of ITA 2007 (terminal trade loss relief) apply in relation to the trader as if—
a
the trader had permanently ceased to carry on the trade on 5 April 2024, and
3
Nothing in this paragraph is to be taken to affect the further application of sections 89 to 91 of ITA 2007 in relation to the trade.