Section 335A | Carry forward of CITR

(1)This section applies if—

(a)the investor is entitled to a tax reduction for a relevant tax year under section 335 in respect of the investment, but

(b)the amount of the tax reduction is not fully deducted at Step 6 for that relevant tax year.

(2)The amount (“the excess amount”) not deducted is treated as follows.

(3)For each subsequent relevant tax year for which the investor—

(a)is entitled to a tax reduction under section 335 in respect of the investment, and

(b)makes a claim under this subsection,

the investor is also entitled to a tax reduction under this subsection which is given effect at Step 6.

(4)The amount of the tax reduction under subsection (3) for any relevant tax year is the excess amount so far as it has not been deducted at Step 6 for any earlier relevant tax year by virtue of that subsection.

(5)In this section “Step 6” means Step 6 of the calculation in section 23.