Section 269CH | Losses covered by carried-forward loss allowance ^F1

From legislation.gov.uk

26 March 2015

(1)This section applies to a banking company if—^F1

(a)it is a building society, or^F1

(b)an amount of carried-forward loss allowance is allocated to the company by a building society in accordance with section 269CI or 269CJ.^F1

(2)If a banking company to which this section applies has an amount of carried-forward loss allowance (see subsection (5)), the company may designate as unrestricted losses any losses which, in relation to any accounting period, would (in the absence of this section) be relevant carried-forward losses.^F1

(3)A loss designated under this section as an unrestricted loss is to be treated for the purposes of this Chapter as if it were not a relevant carried-forward loss.^F1

(4)The amount of losses which a company may designate at any time must not exceed the amount of carried-forward loss allowance which the company has at that time.^F1

(5)The amount of carried-forward loss allowance which a company has at any time is the difference between the company's maximum available carried-forward loss allowance and the total amount of losses designated by the company under this section before that time.^F1

(6)The “maximum available carried-forward loss allowance” is—^F1

(a)in the case of a building society which has not made an allocation under section 269CI, £25,000,000;^F1

(b)in the case of a building society which has made an allocation under section 269CI, the amount given by—^F1

Formula

(A - B) + C

where—

A is £25,000,000,

B is the sum of—

any amounts which it has allocated to another company under section 269CI, and

any amounts allocated to another company under section 269CJ which immediately before the allocation were amounts of carried-forward loss allowance which the building society had, and

C is the sum of any amounts allocated to the building society under section 269CJ;

(c)in the case of any other company, the total amount of carried-forward loss allowance allocated to the company under section 269CI or 269CJ.^F1

(7)References in this Chapter to an amount of carried-forward loss allowance allocated to a company are references to an amount allocated to the company under section 269CI or 269CJ.^F1

(8)For the meaning of “relevant carried-forward loss”, see section 269CN.^F1

(9)For information about the procedure for making a designation under this section, see Schedule 18 to FA 1998, in particular Part 9E of that Schedule.^F1