Section 212Q | When there are postponed capital allowances ^F1

(1)This section has effect where C or P has relevant postponed capital allowances.^F1

(2)C or P has relevant postponed capital allowances if amount 2 in section 212K(3) is an amount other than nil.^F1

(3)Where, following the qualifying change, a person ceases to carry on a qualifying activity (or part of a qualifying activity) and C begins to carry on (whether or not in partnership) that activity (or that part of an activity) as part of its trade or business, for the purposes of claiming any allowance in respect of qualifying expenditure such as is mentioned in section 212K(3) the carrying on of that activity (or that part) by C is to be regarded as the carrying on of a separate trade or business.^F1F2F3F4F5F6

(4)A loss attributable to an allowance claimed in respect of qualifying expenditure such as is mentioned in section 212K(3) may not be set off under section 37, 45A, 62 or 66 of CTA 2010 or section 259 or 260(3) of this Act otherwise than against the profits of a qualifying activity carried on by C, or any company that is a member of P, at the beginning of the relevant day.^F1F7F8F9

(5)And the amount of such a loss which may be so set off by any person is not to exceed the amount of the loss which would have been available for such set off by the person but for the qualifying change.^F1

(6)A loss attributable to an allowance claimed in respect of qualifying expenditure such as is mentioned in section 212K(3) may not be set off by a company (“the claimant company”) by way of group relief in accordance with Part 5 of CTA 2010 or group relief for carried forward losses in accordance with Part 5A of CTA 2010 ... unless it would have been available for such set off but for the qualifying change.^F1F10F11F12

(7)And the amount of such a loss which is available for such set off by the claimant company is not to exceed the amount of the loss which would have been available for such set off by the claimant company but for the qualifying change.^F1

(8)If, in relation to any pool—^F1

what would otherwise be the amount of qualifying expenditure such as is mentioned in section 212K(3) is to be treated for the purposes of this section as reduced by so much of the difference between BSVP and PA in relation to the pool as is not taken into account under section 212O(5) in relation to a relevant pool.

(9)Where any activity not carried on by C, or a company that is a member of P, at the beginning of the relevant day would otherwise be regarded for the purposes of corporation tax as forming part of a qualifying activity carried on by C or the member of P at that time it is not to be so regarded for the purposes of subsection (4).^F1