SolvedIFM23105 | Real Estate Investment Trust : Entry to the regime: effects of entry: trading and other losses from pre-entry periods: CTA2010/S541
From HM Revenue & Customs · Investment Funds Manual
The table below sets out the position for utilising losses etc arising in accounting periods up to the date the REIT rules first apply and which have not been offset against other profits of pre-entry accounting periods, either in the same company or surrendered as group relief. See The table below sets out the position for utilising losses etc arising in accounting periods up to the date the REIT rules first apply and which have not been offset against other profits of pre-entry accounting periods, either in the same company or surrendered as group relief. See for descriptions of terms used below and for Table 1: capital losses
Table 2: trading and other losses etc
| ##### Description | ##### Type of loss etc | ##### Can be used against |
|---|---|---|
| Qualifying UK property business | Property loss | No carry forward since business ceases at entry (CTA2010/S541(4)) |
| Other UK property business | Property rental loss (CTA2010/S62) | Profits of the residual business |
| Trade | Trading loss (CTA2010/S37) | Trading profits of the same trade included in the residual business |
| Qualifying overseas property business | Overseas property loss | No carry forward since business ceases at entry (CTA2010/S541(4)) |
| Other overseas property business | Overseas property loss (CTA2010/S66) | Overseas profits of other overseas property business included in the residual business |
| Other overseas income | Overseas trading loss (CTA2010/S37) | Overseas profits from same source included in the residual business |
| Other chargeable income | CTA2010/S91 | Other chargeable profits included in the residual business |
The qualifying UK property business and overseas property business losses are lost on entry to the regime, on cessation of those businesses. There can be no later claims in respect of these losses.
See [The table below sets out the position for utilising losses etc arising in accounting periods up to the date the REIT rules first apply and which have not been offset against other profits of pre-entry accounting periods, either in the same company or surrendered as group relief. See The table below sets out the position for utilising losses etc arising in accounting periods up to the date the REIT rules first apply and which have not been offset against other profits of pre-entry accounting periods, either in the same company or surrendered as group relief. See for descriptions of terms used below and for Table 1: capital losses
Table 2: trading and other losses etc
| ##### Description | ##### Type of loss etc | ##### Can be used against |
|---|---|---|
| Qualifying UK property business | Property loss | No carry forward since business ceases at entry (CTA2010/S541(4)) |
| Other UK property business | Property rental loss (CTA2010/S62) | Profits of the residual business |
| Trade | Trading loss (CTA2010/S37) | Trading profits of the same trade included in the residual business |
| Qualifying overseas property business | Overseas property loss | No carry forward since business ceases at entry (CTA2010/S541(4)) |
| Other overseas property business | Overseas property loss (CTA2010/S66) | Overseas profits of other overseas property business included in the residual business |
| Other overseas income | Overseas trading loss (CTA2010/S37) | Overseas profits from same source included in the residual business |
| Other chargeable income | CTA2010/S91 | Other chargeable profits included in the residual business |
The qualifying UK property business and overseas property business losses are lost on entry to the regime, on cessation of those businesses. There can be no later claims in respect of these losses.
See](https://www.gov.uk/hmrc-internal-manuals/investment-funds/ifm23100) and [The table below sets out the position for utilising losses etc arising in accounting periods up to the date the REIT rules first apply and which have not been offset against other profits of pre-entry accounting periods, either in the same company or surrendered as group relief. See The table below sets out the position for utilising losses etc arising in accounting periods up to the date the REIT rules first apply and which have not been offset against other profits of pre-entry accounting periods, either in the same company or surrendered as group relief. See for descriptions of terms used below and for Table 1: capital losses
Table 2: trading and other losses etc
| ##### Description | ##### Type of loss etc | ##### Can be used against |
|---|---|---|
| Qualifying UK property business | Property loss | No carry forward since business ceases at entry (CTA2010/S541(4)) |
| Other UK property business | Property rental loss (CTA2010/S62) | Profits of the residual business |
| Trade | Trading loss (CTA2010/S37) | Trading profits of the same trade included in the residual business |
| Qualifying overseas property business | Overseas property loss | No carry forward since business ceases at entry (CTA2010/S541(4)) |
| Other overseas property business | Overseas property loss (CTA2010/S66) | Overseas profits of other overseas property business included in the residual business |
| Other overseas income | Overseas trading loss (CTA2010/S37) | Overseas profits from same source included in the residual business |
| Other chargeable income | CTA2010/S91 | Other chargeable profits included in the residual business |
The qualifying UK property business and overseas property business losses are lost on entry to the regime, on cessation of those businesses. There can be no later claims in respect of these losses.
See [The table below sets out the position for utilising losses etc arising in accounting periods up to the date the REIT rules first apply and which have not been offset against other profits of pre-entry accounting periods, either in the same company or surrendered as group relief. See The table below sets out the position for utilising losses etc arising in accounting periods up to the date the REIT rules first apply and which have not been offset against other profits of pre-entry accounting periods, either in the same company or surrendered as group relief. See for descriptions of terms used below and for Table 1: capital losses
Table 2: trading and other losses etc
| ##### Description | ##### Type of loss etc | ##### Can be used against |
|---|---|---|
| Qualifying UK property business | Property loss | No carry forward since business ceases at entry (CTA2010/S541(4)) |
| Other UK property business | Property rental loss (CTA2010/S62) | Profits of the residual business |
| Trade | Trading loss (CTA2010/S37) | Trading profits of the same trade included in the residual business |
| Qualifying overseas property business | Overseas property loss | No carry forward since business ceases at entry (CTA2010/S541(4)) |
| Other overseas property business | Overseas property loss (CTA2010/S66) | Overseas profits of other overseas property business included in the residual business |
| Other overseas income | Overseas trading loss (CTA2010/S37) | Overseas profits from same source included in the residual business |
| Other chargeable income | CTA2010/S91 | Other chargeable profits included in the residual business |
The qualifying UK property business and overseas property business losses are lost on entry to the regime, on cessation of those businesses. There can be no later claims in respect of these losses.
See](https://www.gov.uk/hmrc-internal-manuals/investment-funds/ifm23100) and](https://www.gov.uk/hmrc-internal-manuals/investment-funds/ifm23110) for Tables 1 and 3: capital losses and other expenses etc.