The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004

Schedule A losses

12.—(1) Section 392A(1) is amended as follows.

(2) For subsection (3) (investment company ceasing to carry on Schedule A business) substitute—

“(3) Where a company with investment business—

(a) ceases to carry on a Schedule A business, but

(b) continues to be a company with investment business,

any Schedule A loss that cannot be used under the preceding provisions shall be carried forward to the succeeding accounting period and be treated for the purposes of section 75 as if it were expenses of management deductible for that period.”.

(3) In subsection (4) (definitions) in paragraph (b) (definition of “investment company”) for ““investment company”” substitute ““company with investment business””.

(4) Any loss which would, apart from this sub-paragraph, have fallen to be carried forward under section 392A(3) of the Taxes Act 1988 and treated as if it had been disbursed as expenses of management for the first accounting period of a company to begin on or after 1st April 2004 shall be treated as if that provision instead provided for the loss to be carried forward and treated for the purposes of section 75 of that Act as if it were expenses of management deductible for that period.

(1)

Section 392A was inserted by paragraph 28 of Schedule 5 to the Finance Act 1998.