Section 269CF | Losses arising in company's start-up period ^F1

(1)References in this Chapter to a pre-2015 carried-forward trading loss do not include a loss which was made in a trade of a company in an accounting period ending in the company's start-up period.

(2)References in this Chapter to a pre-2015 carried-forward non-trading deficit do not include a non-trading deficit which a company had from its loan relationships under section 301(6) of CTA 2009 for an accounting period ending in the company's start-up period.

(3)References in this Chapter to pre-2015 carried-forward management expenses, in relation to a company, do not include—

(a)any amounts falling within section 269CC(5) which—

(i)for the purposes of Chapter 2 of Part 16 of CTA 2009 are referable to an accounting period ending in the company's start-up period, or

(ii)in the case of qualifying charitable donations, were made in such an accounting period, or

(b)any amounts of loss falling within section 269CC(6) which were made in an accounting period ending in the company's start-up period.

(4)For the purposes of this Chapter any amounts which, by virtue of subsections (1) to (3), are not relevant carried-forward losses of a company are to be regarded as having been taken into account in determining the taxable total profits of the company for accounting periods ending before 1 April 2015 before any amounts which are relevant carried-forward losses of the company.

(5)Subsection (6) applies where a company has an accounting period (“the straddling period”) beginning before, and ending after, the last day of its start-up period.

(6)For the purposes of this section—

(a)so much of the straddling period as falls within the start-up period, and so much of the straddling period as falls outside the start-up period, are treated as separate accounting periods, and

(b)any relevant carried-forward losses of the company for the straddling period are apportioned to the two separate accounting periods—

(i)in accordance with section 1172 (time basis), or

(ii)if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.

(7)In subsection (6)(b) the reference to any relevant carried-forward losses of the company “for” the straddling period is a reference to—

(a)any pre-2015 carried-forward trading loss which was made in a trade of the company in the straddling period,

(b)any pre-2015 carried-forward non-trading deficit which the company had from its loan relationships for the straddling period, and

(c)any pre-2015 carried-forward management expenses which are referable to, or were made in, the straddling period (as the case may be).

(8)For provision about determining a company's start-up period, see section 269CG.