Section 944B | Modified application of section 45B

(1)Subsection (2) applies if—

(a)this Chapter applies to a transfer of a trade,

(b)the predecessor made a loss in the transferred trade in the accounting period in which it ceased to carry it on,

(c)that accounting period began on or after 1 April 2017,

(d)relief under section 37 or 42 or Part 5 is not given for an amount of the loss, and

(e)it is the case that—

(i)relief under section 37 was unavailable for the loss by reason of any provision mentioned in section 45A(3)(b)(i) or (ii),

(ii)relief under section 37 would be unavailable by reason of section 44 for a loss (assuming there was one) made by the successor in the transferred trade in the accounting period in which the successor begins to carry on the transferred trade (“the successor's start-up accounting period”), or

(iii)the transferred trade is a ring fence trade.

(2)Subsections (2) to (8) of section 45B (carry forward of post-1 April 2017 trade loss against trade profits) apply as if—

(a)references to the unrelieved amount were to the amount mentioned in subsection (1)(d),

(b)references to the later period were to the successor's start-up accounting period,

(c)references to the company were to the successor, and

(d)references to the trade were to the transferred trade.

(3)Subsection (4) applies if—

(a)this Chapter applies to a transfer of a trade,

(b)an amount of a loss made in the transferred trade was carried forward under section 45B(2) to the accounting period in which the predecessor ceased to carry on the trade, and

(c)any of that amount is not used under section 45B(4) to reduce profits of the transferred trade of the accounting period in which the predecessor ceases to carry on the trade.

(4)Subsections (2) to (8) of section 45B apply as if—

(a)references to the unrelieved amount were to so much of the amount referred to in subsection (3)(b) as is not used as mentioned in subsection (3)(c),

(b)references to the later period were to the accounting period of the successor in which the successor begins to carry on the transferred trade,

(c)references to the company were to the successor, and

(d)references to the trade were to the transferred trade.