SCHEDULES
SCHEDULE 26 RELIEFS AGAINST LIABILITY FOR TAX IN RESPECT OF CHARGEABLE PROFITS
Trading losses and group relief etc. M1
1
1
In any case where—
a
an amount of chargeable profits is apportioned to a company resident in the United Kingdom, and
b
the company is entitled, or would on the making of a claim be entitled, in computing its profits for the appropriate accounting period, to a deduction in respect of any relevant allowance, F1. . .
c
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
then, on the making of a claim, a sum equal to corporation tax at the appropriate rate on so much of the relevant allowance F2. . . as is specified in the claim shall be set off against the company’s liability to tax under section 747(4)(a) in respect of the chargeable profits apportioned to it.
2
In this paragraph—
a
“the appropriate accounting period” means the accounting period for which, by virtue of section 754(2), the company is F3chargeable to tax by virtue of this Chapter in respect of the chargeable profits concerned; and
b
“the appropriate rate” means the rate of corporation tax applicable to profits of the appropriate accounting period or, if there is more than one such rate, the average rate over the whole accounting period.
3
In this paragraph “relevant allowance” means—
a
any loss to which F7section 392A(1) or 393A(1) applies;
b
any charge on income to which section 338(1) applies;
c
any expenses of management to which section 75(1) applies;
d
so much of any allowance to which section 74 of the 1968 Act applies as falls within subsection (3) of that section; F4. . .
e
any amount available to the company by way of group relief; F5and
f
any non-trading deficit on its loan relationships.
4
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Where, by virtue of sub-paragraph (1) above, a sum is set off against a liability to tax, so much of the relevant allowance as gives rise to the amount set off shall be regarded for the purposes of the Tax Acts as having been allowed as a deduction against the company’s profits in accordance with the appropriate provisions of those Acts.
6
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Source—1984 Sch.18.