Section 46 | Use of trade-related interest and dividends if insufficient trade profits

(1)This section applies if in an accounting period a company carrying on a trade makes a loss in the trade and either—

(a)relief for the loss could be given in a later accounting period under section 45(4)(b) or 45B(4) but for the fact that there are no profits of the trade of the later accounting period, or

(b)the amount of relief for the loss that could be given in a later accounting period under section 45(4)(b) or 45B(4) is limited by reason of the amount of profits of the trade of the later accounting period.

(2)For the purposes of section 45 and 45B, Treat any interest or dividends within subsection (3) as profits of the trade of the later period.

(3)Interest or dividends are within this subsection if they—

(a)are from investments, and

(b)would be brought into account as trading receipts in calculating the profits of the trade of the later period but for the fact that they have been subjected to tax under other provisions of the Tax Acts.