Finance (No. 2) Act 2017

Losses of orchestral trade U.K.

43 U.K. Chapter 4 of Part 15D of CTA 2009 (losses of separate orchestral trade) is amended as follows.

44 (1) Section 1217SA (restriction on use of losses before completion period) is amended as follows. U.K.

(2) In subsection (1) for “Subsection (2)” substitute “ This section ”.

(3) In subsection (2)—

(a) after “45” insert “ or 45B ”, and

(b) for “set against” substitute “ deducted from ”.

(4) After subsection (2) insert—

“(3) If the loss is carried forward under section 45 or 45B of CTA 2010 and deducted from profits of the separate orchestral trade in a subsequent period, the deduction is to be ignored for the purposes of section 269ZB of CTA 2010 (restriction on deductions from trading profits).”

45 (1) Section 1217SB (use of losses in the completion period) is amended as follows. U.K.

(2) In subsection (1) after “45” insert “ or 45B ”.

(3) In subsection (2) for “loss relief” substitute “ section 37 and Part 5 of CTA 2010 ”.

46 (1) Section 1217SC (terminal losses) is amended as follows. U.K.

(2) In subsection (1)(b) after “45” insert “ or 45B ”.

(3) In subsection (3) for the words after “treated” to the end substitute “—

(a) in a case where the loss could have been carried forward under section 45 of CTA 2010 had trade 1 not ceased, as if it were a loss carried forward under that section to be set against the profits of trade 2 of the first accounting period beginning after the cessation and so on, and

(b) in a case where the loss could have been carried forward under section 45B of CTA 2010 had trade 1 not ceased, as if it were a loss made in trade 2 which has been carried forward under that section to the first accounting period beginning after the cessation.”

(4) In subsection (6) for the words after “treated” to the end substitute “—

(a) in a case where the amount could have been carried forward under section 45 of CTA 2010 had trade 1 not ceased, as if it were a loss carried forward by company B under that section to be set against the profits of company B's trade of the first accounting period beginning after the cessation and so on, and

(b) in a case where the amount could have been carried forward under section 45B of CTA 2010 had trade 1 not ceased, as if it were a loss made in company B's trade which has been carried forward under that section to the first accounting period beginning after the cessation.”

(5) After subsection (8) insert—

“(9) A deduction under section 45 or 45B of CTA 2010 which is made in reliance on this section is to be ignored for the purposes of section 269ZB of that Act (restriction on deductions from trading profits).”