[F1403ZA Amounts eligible for group relief: trading losses.U.K.
(1)For the purposes of section 403 a trading loss means a loss incurred by the surrendering company in the surrender period in carrying on a trade, computed as for the purposes of section 393A(1).
(2)That section does not apply to a trading loss which would be excluded from section 393A(1) by—
(a)section 393A(3) (foreign trades and certain trades not carried on with a view to gain), or
(b)section 397 (farming and market gardening: restriction on loss relief).
(3)Where a company owned by a consortium—
(a)has in any relevant accounting period incurred a trading loss, and
(b)has profits (of whatever description) of that accounting period against which that loss could be set off under section 393A(1),
the amount of the loss available to a member of the consortium on a consortium claim shall be determined on the assumption that the company has made a claim under section 393A(1) requiring the loss to be so set off.
(4)Where the company mentioned in subsection (3) is a group/consortium company, the amount of the loss available under that subsection shall be determined before any reduction is made under section 405(1) to (3).]
Textual Amendments
F1Ss. 403-403ZE substituted for s. 403 (with effect in accordance with s. 38(2)(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 5 para. 29 (with Sch. 5 para. 73)