Section 45 | Carry forward of pre-1 April 2017 trade loss against subsequent trade profits

(1)This section applies if, in an accounting period beginning before 1 April 2017 , a company carrying on a trade makes a loss in the trade.

(2)Relief for the loss is given to the company under this section.

(3)The relief is given for that part of the loss for which no relief is given under section 37 or 42 (“the unrelieved loss”).

(4)For this purpose—

(a)the unrelieved loss is carried forward to subsequent accounting periods (so long as the company continues to carry on the trade), and

(b)the profits of the trade of any such period are reduced by the unrelieved loss so far as that loss is not used under this paragraph to reduce the profits of an earlier period.

(4A)But the company may make a claim that the profits of the trade of an accounting period specified in the claim are not to be reduced by the unrelieved loss, or are not to be reduced by the unrelieved loss by more than an amount specified in the claim.

(4B)A claim under subsection (4A) may specify an accounting period only if it begins on or after 1 April 2017.

(4C)A claim under subsection (4A) is effective if, and only if, it is made—

(a)within the period of two years after the end of the accounting period specified in the claim, or

(b)within such further period as an officer of Revenue and Customs may allow.

(5)In this section and , sections 45B, 45F and 46 references to profits of the trade are references to profits of the trade chargeable to corporation tax.

(6)Relief under this section is subject to restriction or modification in accordance with provisions of the Corporation Tax Acts.