Section 45C | Re-application of section 45A if loss remains after previous application ^F1

(1)This section applies if—

(a)an amount of a loss made in a trade is carried forward to an accounting period (“the later period”) of a company under section 45A(4),

(b)any of that amount is not deducted from the company's total profits of the later period on a claim under section 45A(5) or surrendered by way of group relief for carried forward-losses under Part 5A,

(c)the company continues to carry on the trade in the accounting period (“the further period”) after the later period, and

(d)the conditions in subsection (2) are met.

(2)The conditions are that—

(a)the trade did not become small or negligible in the later period,

(b)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 further period, and

(c)the further period is not an excluded accounting period of a general insurance company.

(3)Subsections (4) to (8) of section 45A apply as if—

(a)references to the unrelieved amount were to so much of the amount carried forward to the later period as is not deducted or surrendered as mentioned in subsection (1)(b), and

(b)references to the later period were to the further period.

(4)In this section “excluded accounting period” and “general insurance company” have the same meaning as in section 45A.