Section 937G | Ring-fenced scheme loss: treatment in period in which made ^F1

(1)This section applies for the purpose of determining the amount (if any) of a ring-fenced scheme loss that may be brought into account by a company in the accounting period in which it is made.^F1

(2)If the amount of the company's profits pool for the scheme as at the beginning of the period is nil, the ring-fenced scheme loss may not be brought into account.^F1

(3)If the amount of the company's profits pool for the scheme as at the beginning of the period is—^F1

(a)greater than nil, and^F1

(b)less than the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company,^F1

only the relevant proportion of the ring-fenced scheme loss may be brought into account.

(4)For this purpose “ the relevant proportion ” means—^F1

(5)If the amount of the company's profits pool for the scheme as at the beginning of the period is equal to or greater than the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company, the ring-fenced scheme loss may be brought into account in full.^F1

(6)A reference in this paragraph to bringing a ring-fenced scheme loss into account is to bringing it into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts).^F1