in an accounting period a company incurs a loss in a trade in respect of which it is within the charge to corporation tax under F3Chapter 2 of Part 3 of CTA 2009, and

in any later accounting period to which the loss or any part of it is carried forward under subsection (1) above relief in respect thereof cannot be given, or cannot wholly be given, because the amount of the trading income of the trade is insufficient,

exceed the amount of the profits against which they are deductible, and

include payments made wholly and exclusively for the purposes of a trade carried on by the company,

of that accounting period, and

if the company was then carrying on the trade and the claim so requires, of preceding accounting periods falling wholly or partly within the period specified in subsection (2) below;

the whole of any loss incurred in that trade by that company in an accounting period beginning twelve months or less before that time; and

the part of any loss incurred in that trade by that company in an accounting period ending, but not beginning, in that twelve months which is proportionate to the part of that accounting period falling within those twelve months.

a loss is incurred by a company in a ring fence trade carried on by that company, and

the accounting period in which the loss is incurred is an accounting period for which an allowance under F8section 164 of the Capital Allowances Act (F9general decommissioning expenditure incurred before cessation of ring fence trade) is made to that company,

on the company ceasing to carry on the trade, any of the activities of the trade begin to be carried on by a person who is not (or by persons any or all of whom are not) within the charge to corporation tax, and

the company's ceasing to carry on the trade is part of a scheme or arrangement the main purpose, or one of the main purposes, of which is to secure that subsection (2A) above applies to a loss by reason of the cessation.

the trade is one carried on in the exercise of functions conferred by or under any enactment (including an enactment contained in a local or private Act), or

F13for that accounting period the trade was being carried on on a commercial basis and with a view to the realisation of gain in the trade or in any larger undertaking of which the trade formed part;

where at any time a trade is carried on so as to afford a reasonable expectation of gain, it shall be treated as being carried on at that time with a view to the realisation of gain; and

where in an accounting period there is a change in the manner in which a trade is being carried on, it shall be treated as having throughout the accounting period been carried on in the way in which it was being carried on by the end of that period.

subsection (7) above has effect for computing the loss for any accounting period, and

that accounting period is one beginning before the beginning of the twelve months mentioned in that subsection,

the amount of a loss incurred in a trade in an accounting period shall be computed in the same way as trading income from the trade in that period would have been computed;

“trading income” means, in relation to any trade, the income which falls or would fall to be included in respect of the trade in the total profits of the company; and

references to a company carrying on a trade refer to the company carrying it on so as to be within the charge to corporation tax in respect of it.

by virtue of F20section 165 of the Capital Allowances Act (F9general decommissioning expenditureF21after ceasing ring fence trade) the qualifying expenditure of the company for the chargeable period related to the cessation of its ring fence trade is treated as increased by any amount, or

by virtue of F22section 416 of that Act (expenditure on restoration within 3 years of ceasing to trade) any expenditure is treated as qualifying expenditure incurred by the company on F23the last day of trading.

to the extent that the claim relates to expenditure falling within subsection (11)(b), subsection (10) shall have effect with the substitution of “ five years ” for “two years”.

a company makes a claim under section 393A(1) requiring that a loss incurred in a ring fence trade be set off against profits;

the loss incurred in the ring fence trade that may be set off under section 393A (“L”) exceeds the profits against which L may be set off under section 393A (“P”).

falls wholly or partly before the three year set off period, and

ends on or after 17 April 2002.

the amount by which L exceeds P, or

so much of that amount as cannot be relieved under this subsection against profits of the ring fence trade of a later accounting period.

under a contract entered into on or after 6th March 1973 a company (“the first company”) incurs capital expenditure on the provision of F30plant or machinery which the first company lets to another person by another contract (a “leasing contract”); and

apart from this subsection, the first company would be entitled F31under section 393(1) or in pursuance of a claim under section 393A(1) to relief in respect of losses incurred on the leasing contract; and

in the accounting period for which F32an annual investment allowance or a first-year allowance, F33within the meaning of Part 2 of the Capital Allowances Act, in respect of the expenditure referred to in paragraph (a) above is made to the first company, arrangements are in existence by virtue of which, at some time during or after the expiry of that accounting period, a successor company will be able to carry on any part of the first company’s trade which consists of or includes the performance of all or any of the obligations which, apart from the arrangements, would be the first company’s obligations under the leasing contract,

section 343 applies in relation to the first company and the other company as the predecessor and the successor within the meaning of that section; or

the two companies are connected with each other within the terms of section 839.