Section 1179BF | Carrying forward of production losses

(1)This section applies if a company makes a loss in the separate production trade in a pre-completion period (see sections 1179DY and 1179FQ).

(2)The loss is not available for loss relief, except as provided in subsections (3) and (5).

(3)The loss is not prevented from being carried forward under section 45B of CTA 2010 to be deducted from profits of the separate production trade in a subsequent period.

(4)If the loss is so carried forward and deducted, the deduction is to be ignored for the purposes of section 269ZB of CTA 2010.

(5)To the extent that the loss could be carried forward under section 45B of CTA 2010 to the completion period or a subsequent accounting period, it may instead be treated for the purposes of section 37 and Part 5 of CTA 2010 as a loss made in that period.

(6)Subsection (5) does not apply to the extent that the loss is carried forward by virtue of section 1179BG.

(7)In this section, “loss relief” includes any means by which a loss might be used to reduce the amount in respect of which the company, or any other person, is chargeable to tax.