Section 357PC | Tax credit under section 1054 of CTA 2009: entitlement ^F1

(1)Section 1055 of CTA 2009 (meaning of “Chapter 2 surrenderable loss”) does not apply to a company in relation to a qualifying trade it carries on in an accounting period in which it is a Northern Ireland company (and the following provisions of this section apply instead).^F1

(2)The company has a Chapter 2 surrenderable loss in the period for the purposes of Chapter 2 of Part 13 of CTA 2009 if—^F1

(a)it obtains an additional deduction under section 1044 of CTA 2009 in the accounting period in calculating the profits of the trade, and^F1

(b)it has—^F1

(i)a Northern Ireland loss of the trade in the period, or^F1

(ii)a mainstream loss of the trade in the period.^F1

(3)In this Chapter—^F1

(a)“Northern Ireland Chapter 2 surrenderable loss” means a Chapter 2 surrenderable loss that a company has by virtue of subsection (2)(b)(i);^F1

(b)“mainstream Chapter 2 surrenderable loss” means a Chapter 2 surrenderable loss that a company has by virtue of subsection (2)(b)(ii).^F1

(4)The amount of a Northern Ireland Chapter 2 surrenderable loss is—^F1

(a)so much of the Northern Ireland loss in question as is unrelieved, or^F1

(b)if less, the Northern Ireland qualifying Chapter 2 expenditure in respect of which the relief was obtained, multiplied by the adjusted section 1044 percentage.^F1

(5)The amount of a mainstream Chapter 2 surrenderable loss is—^F1

(a)so much of the mainstream loss in question as is unrelieved, or^F1

(b)if less, the qualifying Chapter 2 expenditure in respect of which the relief was obtained that is not Northern Ireland qualifying Chapter 2 expenditure, multiplied by the percentage specified in section 1055(2)(b) of CTA 2009.^F1

(6)For the purposes of this section “the adjusted section 1044 percentage” means—^F1

(7)Section 1056 of CTA 2009 (amount of trading loss which is unrelieved) applies for the purposes of this section.^F1

(8)In the application of section 1056 of CTA 2009 by virtue of subsection (7), subsection (2)(c) of that section has effect as if the reference to any loss surrendered under Part 5 of CTA 2010 were—^F1

(a)where the trading loss in question is a Northern Ireland loss, to any of that Northern Ireland loss surrendered under that Part;^F1

(b)where the trading loss in question is a mainstream loss, to any of that mainstream loss surrendered under that Part.^F1