Corporation Tax Act 2010

105 Restriction on surrender of losses etc within section 99(1)(d) to (g)

(1) This section applies if the surrendering company has for the surrender period losses or other amounts within section 99(1)(d) to (g) (“relevant amounts”) that are eligible for corporation tax relief (apart from this Part).

(2) The surrendering company may not surrender any relevant amount under this Chapter unless the total of the relevant amounts exceeds the surrendering company’s gross profits of the surrender period.

(3) If the total of the relevant amounts does exceed those gross profits—

(a) the surrendering company may surrender relevant amounts, but

(b) the total amount that may be surrendered is limited to the amount of the excess.

(4) If the surrendering company surrenders relevant amounts, the amount surrendered is treated as consisting of—

(a) first, donations within section 99(1)(d),

(b) second, losses within section 99(1)(e),

(c) third, expenses within section 99(1)(f), and

(d) fourth, losses within section 99(1)(g).

(5) For the purposes of this section the surrendering company’s gross profits of the surrender period are its profits for that period without any of the following—

(a) a deduction in respect of any of the kinds of thing mentioned in section 99(1),

(b) a deduction falling to be made in respect of losses, allowances or other amounts of any other period (whether or not in respect of a kind of thing so mentioned), and

(c) a deduction falling to be made by virtue of section 63 of this Act or section 1223(3) of CTA 2009 (other amounts carried forward).

(6) This section is subject to section 305 (oil activities: availability of group relief against ring fence profits).