Corporation Tax Act 2009

1158 Restriction on losses carried forward where tax credit claimed

(1) For the purposes of section 392A of ICTA (UK property business losses carried forward) a company’s UK property business loss for an accounting period in which it claims a land remediation tax credit to which it is entitled is treated as reduced by the amount of the surrendered loss for the period.

(2) For the purposes of section 393 of ICTA (relief of trading losses against future trading profits) a company’s trading loss for an accounting period in which it claims a land remediation tax credit to which it is entitled is treated as reduced by the amount of the surrendered loss for the period.

(3) Subsection (4) applies (instead of subsection (1)) if in an accounting period—

(a) as a result of section 432AB(3) of ICTA, a company’s UK property business loss is treated for the purposes of section 76 of that Act as expenses payable which fall to be brought into account at Step 3 in subsection (7) of that section,

(b) an amount falls to be carried forward to a subsequent accounting period under section 76(12) of ICTA (unrelieved expenses carried forward), and

(c) the company claims a land remediation tax credit for the period.

(4) The amount which falls to be carried forward to a subsequent accounting period under section 76(12) of ICTA is treated as reduced by the amount of the surrendered loss for the period.

(5) References in this section to “the amount of the surrendered loss” for an accounting period are to the amount of any qualifying land remediation loss in respect of which a land remediation tax credit is claimed for the period.