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CTM06775 | Corporation Tax: loss buying: major change in the business of a transferred company: priority of provisions

From HM Revenue & Customs · Company Taxation Manual

CTA10/S676AB

The provisions of CTA10/PART14/CHAPTER2A do not apply where CTA10/PART14/CHAPTER2 or CHAPTER3 can be used instead.

This is achieved through priority rules, which operate where a loss or other amount meets the conditions of CTA10/PART14/CHAPTER2A but could also be restricted under any of the following provisions

  • disallowance of trading losses (CTA10/PART14/CHAPTER2/S674), 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.