SCHEDULES
SCHEDULE 6Temporary extension of carry back of losses
Corporation tax
3
F21
Sections 37(3)(b) and 38(1) and (3) of CTA 2010 (trade loss relief against profits of same or earlier accounting period) have effect in relation to any loss to which this paragraph applies as if the references to 12 months were references to 3 years (but subject as follows).
2
This paragraph applies to any loss incurred by a company in a trade in a relevant accounting period (but subject to sub-paragraph (3)); and a relevant accounting period is one ending after 23 November 2008 and before 24 November 2010.
3
The maximum amount of loss to which this paragraph applies in the case of any company is—
a
£50,000 in relation to losses incurred in relevant accounting periods ending after 23 November 2008 and before 24 November 2009, and
b
£50,000 in relation to losses incurred in relevant accounting periods ending after 23 November 2009 and before 24 November 2010;
and the overall limit or limits apply whether a loss is incurred by the company in only one relevant accounting period or losses are so incurred in more than one such period.
4
Subject to that, if in the case of the company the length of a relevant accounting period is less than one year, the maximum amount of the loss incurred in that period that may be F3relieved under section 37 of CTA 2010 by virtue of this paragraph is the relevant proportion of £50,000.
5
“The relevant proportion” is—
where—
RAP is the number of days in the relevant accounting period, and
Y is 365.
F16
The reference in subsection (2) of section 40 of CTA 2010 to the loss mentioned in subsection (1)(a) of that section (so far as not a terminal loss and so far as not exceeding the allowance mentioned in subsection (1)(b) of that section) (“the section 40 loss”) has effect in relation to a relevant accounting period as a reference to so much of the section 40 loss as exceeds that which can be set off under section 37 by virtue of this paragraph.