Section 1153 | Amount of a loss which is “unrelieved”

(1)The amount of a UK property business loss or trading loss that is “unrelieved” is the amount of the loss reduced by—

(a)any relief obtained by the company under section 62(1) to (3) of CTA 2010, or that was or could have been obtained by it making a claim under section 37(3)(a) of CTA 2010, to deduct the loss from total profits of the same accounting period,

(b)any other relief obtained by the company in respect of the loss, including relief under section 37(3)(b) of CTA 2010 (losses deducted from profits of an earlier accounting period), and

(c)any loss surrendered under Part 5 or Part 5A of CTA 2010 (surrender of relief to group or consortium members).

(2)No account is to be taken for this purpose of—

(a)any UK property business losses or trading losses brought forward from an earlier accounting period under section 45, 45A, 45B or 62(5) of CTA 2010, or

(b)any trading losses carried back from a later accounting period under section 37(3)(b) of CTA 2010 .

(3)Subsections (4) to (7) apply (instead of subsection (1)) to determine the amount of a UK property business loss that is “unrelieved” in an accounting period (“the relevant accounting period”) in a case where, as a result of section 87(3) of FA 2012, the loss is treated for the purposes of section 76 of that Act as a deemed BLAGAB management expense for the relevant accounting period.

(4)If in the relevant accounting period no amount falls to be carried forward to a subsequent accounting period under section 73 of FA 2012 (unrelieved expenses carried forward), no amount of the UK property business loss is unrelieved.

(5)If in the relevant accounting period there is an amount which falls to be carried forward to a subsequent accounting period under section 73 of FA 2012, the amount of the UK property business loss that is unrelieved is—

(a)the amount which so falls to be carried forward, or

(b)if less, the amount of the UK property business loss.

(6)In determining for the purposes of subsection (4) or (5) whether there is an amount which falls to be carried forward to a subsequent accounting period under section 73 of FA 2012, no account is to be taken of the amounts specified in subsection (7).

(7)Those amounts are amounts—

(a)brought forward from an earlier accounting period, and

(b)taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the relevant accounting period as a result of—

(i)the previous application of section 73 or 93 of FA 2012, or

(ii)the carry forward to the relevant accounting period of an amount under section 391 of this Act (surplus deficit).

(8)If—

(a)the company is an insurance company, and

(b)it is treated under section 86 of FA 2012 as carrying on more than one UK property business,

references in this section to a UK property business loss are to be read in accordance with section 87(4) of FA 2012 (aggregation of losses).