CTM06775 | Corporation Tax: loss buying: major change in the business of a transferred company: priority of provisions
From HM Revenue & Customs · Company Taxation Manual
The provisions of do not apply where or CHAPTER3 can be used instead.
This is achieved through priority rules, which operate where a loss or other amount meets the conditions of but could also be restricted under any of the following provisions
disallowance of trading losses (), and
restrictions on relief for companies with investment business (CTA10/PART14/CHAPTER3/S679 to S683).
In these circumstances, the provision in CHAPTER2A that would otherwise restrict the loss does not apply. The available provision of CHAPTER2 or CHAPTER3 is used instead.