Finance Act 1981

37 Set-off of relief under section 36(2) against franked investment income

(1) Section 254 of the Taxes Act (set-off against franked investment income) shall be amended as follows.

(2) In subsection (2) after paragraph (d) there shall be inserted—

“(e) the setting of losses against income under section 36(2) of the Finance Act 1981.”

(3) In subsection (4)—

(a) after the words " to section 74(3) of the Capital Allowances Act 1968 " there shall be inserted the words " or to section 36(2) of the Finance Act 1981 ";

(b) after the words " by section 74(4) of the Capital Allowances Act 1968 " there shall be inserted the words " or by section 36(3) of the Finance Act 1981 ".

(4) In subsection (6) after paragraph (b) there shall be inserted the words “and

(c) in relation to relief given in respect of losses under section 36(2) of the Finance Act 1981;”

and to the words in brackets there shall be added " and, as respects the relief mentioned in paragraph (c), the reference to the purposes of section 177(1) of this Act being construed as a reference to the purposes of corporation tax on chargeable gains ".

(5) In subsection (7) after paragraph (c) there shall be inserted—

“(d) if and so far as the purpose for which the claim is made is the setting of a loss against income under section 36(2) of the Finance Act 1981, two years from the end of the accounting period in which the loss was incurred.”