Section 45B | Carry forward of post-1 April 2017 trade loss against trade 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 42 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)case 1, 2 or 3 applies.^F1

Case 1 is that any of the conditions in section 45A(3) are not met.

Case 2 is that relief for the unrelieved amount was not available under section 45A by reason of section 1210(5), 1216DB(5) or 1217DB(5) of CTA 2009.

Case 3 is that the trade is a ring fence trade.

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

(3)Relief for the unrelieved amount is given to the company in the later period if the company makes a profit in the trade in the later period.^F1

(4)The relief is given by reducing the profits of the trade of the later period by the unrelieved amount.^F1

(5)But the company may make a claim for relief not to be given in the later period for the unrelieved amount or for any part of it specified in the claim.^F1

(6)A claim under subsection (5) is effective if, and only if, it is 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

(7)If the trade is a ring fence trade, this section has effect only in relation to so much of the loss mentioned in subsection (1)(a) as is not a non-decommissioning loss.^F1

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

(9)In this section—^F1

“non-decommissioning loss” is to be interpreted in accordance with section 303A;

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

(10)See also section 45A(9) (splitting for the purposes of that section and this section of losses that are partly, but not wholly, shock losses of insurance companies).^F1