Section 45A | Carry forward of post-1 April 2017 trade loss against total profits ^F1

(1)This section applies if—^F1

(a)in an accounting period (“the loss-making period”) beginning on or after 1 April 2017 a company carrying on a trade makes a loss in the trade,^F1

(b)relief under section 37 or Part 5 (group relief) is not given for an amount of the loss (“the unrelieved amount”),^F1

(c)the company continues to carry on the trade in the next accounting period (“the later period”), and^F1

(d)the conditions in subsection (3) are met.^F1

(2)But this section does not apply if the trade is a ring fence trade.^F1

(3)The conditions are that—^F1

(a)the trade did not become small or negligible in the loss-making period,^F1

(b)relief under section 37 was not unavailable for the loss by reason of —^F1

(i)section 37(5), 44, 48 or 52, or^F1

(ii)section 1179BF, 1209, 1216DA, 1217DA, 1217MA, 1217SA or 1218ZDA of CTA 2009,^F1F2

(c)relief under section 37 would not be unavailable by reason of section 44 for a loss (assuming there was one) made in the trade in the later period,^F1

(d)if the company is a Solvency 2 insurance company the loss is not a shock loss (see subsections (9) and (10)), and^F1

(e)the later period is not an excluded accounting period of a general insurance company.^F1

(4)The unrelieved amount is carried forward to the later period.^F1

(5)The company may make a claim for relief to be given in the later period for the unrelieved amount or for any part of it specified in the claim.^F1

(6)If the company makes a claim, the relief is given by deducting the unrelieved amount, or the specified part of it, from the company's total profits of the later period.^F1

(7)A claim under this section must be made—^F1

(a)within the period of two years after the end of the later period, or^F1

(b)within such further period as an officer of Revenue and Customs may allow.^F1

(8)Relief under this section is subject to restriction or modification in accordance with provisions of the Corporation Tax Acts.^F1

(9)For the purposes of this section and section 45B, a loss which is partly, but not wholly, a shock loss is to be treated as if—^F1

(a)the amount that is a shock loss, and^F1

(b)the amount that is not,^F1

were separate losses.

(10)In this section—^F1

“excluded accounting period” has the meaning given by section 269ZG;

“general insurance company” is to be interpreted in accordance with section 269ZG(6);

“ring fence trade” has the same meaning as in Part 8 (see section 277);

“Solvency 2 insurance company” means an insurance company as defined in section 269ZP(2);

“shock loss” has the meaning given by section 269ZK.