Schedules

F1SCHEDULE A1First-year tax credits

Part 1Entitlement to first-year tax credits

Unrelieved loss

10

Paragraphs 11 to 16 apply for the interpretation of paragraph 1(3)(a).

11

(1)

This paragraph applies where the qualifying activity is a trade F2, a UK furnished holiday lettings business or an EEA furnished holiday lettings business and paragraph 14 or 16 does not apply.

(2)

The amount of the loss that is unrelieved is the amount of the loss, reduced by the amount of—

(a)

any relief that was or could have been obtained by the company making a claim under F3section 37(3)(a) of CTA 2010 to deduct the loss from total profits of the same chargeable period,

(b)

any other relief obtained by the company making a claim under F4section 37(3)(b) or 42 of that Act (losses deducted from profits of an earlier chargeable period),

(c)

any loss that was or could have been surrendered under F5Part 5 of that Act (surrender of relief to group or consortium members),

(d)

any loss surrendered under a relevant tax credit provision, and

(e)

any amount set off against the loss under F6Chapter 7 of Part 4 of that Act (write-off of government investment).

(3)

For this purpose no account is to be taken of any losses—

(a)

brought forward from an earlier chargeable period under F7section 45 of CTA 2010,

(b)

carried back from a later chargeable period under F8section 37(3)(b) or 42 of that Act, or

(c)

incurred on a leasing contract (within the meaning of F9section 53 of that Act) in circumstances to which that section applies.

(4)

In sub-paragraph (2)(d) “relevant tax credit provision” means—

F10(a)

Chapter 2 or 7 of Part 13 of CTA 2009 (tax credits for expenditure on research and development or vaccine research etc),

(b)

Chapter 3 of Part 14 of that Act (tax credits for remediation of contaminated land), and

(c)

Chapter 3 of Part 15 of that Act (film tax credits).

12

(1)

This paragraph applies where the qualifying activity is F11an ordinary UK property business or an ordinary overseas property business and paragraph 14 does not apply.

(2)

The amount of the loss that is unrelieved is the amount of the loss, reduced by the amount of—

(a)

any relief that was or could have been obtained by the company making a claim under F12section 62(1) to (3) of CTA 2010 to deduct the loss from total profits of the same chargeable period,

(b)

any loss that was or could have been surrendered under F13Part 5 of that Act (surrender of relief to group or consortium members),

(c)

any loss surrendered under F14Chapter 3 of Part 14 of CTA 2009 (tax credits for remediation of contaminated land), and

(d)

any amount set off against the loss under F15Chapter 7 of Part 4 of CTA 2010 (write-off of government investment).

(3)

For this purpose, no account is to be taken of any losses brought forward from an earlier chargeable period under F16section 62(5) of CTA 2010.

13

(1)

This paragraph applies where the qualifying activity is an overseas property business and paragraph 14 does not apply.

(2)

The amount of the loss that is unrelieved is the amount of the loss, reduced by any amount set off against the loss under F17Chapter 7 of Part 4 of CTA 2010 (write-off of government investment).

(3)

For this purpose, no account is to be taken of any losses brought forward from an earlier chargeable period under F18section 66 of CTA 2010.

14

(1)

This paragraph applies where—

(a)

the qualifying activity is a F19UK property business or an overseas property business, and

(b)

the company is an insurance company.

(2)

If no amount falls to be carried forward to a succeeding chargeable period under section 76(12) of ICTA (carrying forward unrelieved expenses), no amount of the loss is unrelieved.

(3)

If an amount falls to be carried forward to a succeeding chargeable period under section 76(12) of that Act, the amount of the loss that is unrelieved is equal to the lesser of—

(a)

the amount of the loss (see paragraph 7), reduced by any amount within sub-paragraph (4), and

(b)

the total amount which so falls to be carried forward.

(4)

The amounts mentioned in sub-paragraph (3)(a) are—

(a)

the amount of any loss surrendered under F20Chapter 3 of Part 14 of CTA 2009 (tax credits for remediation of contaminated land), and

(b)

any amount F21set off against the loss under Chapter 7 of Part 4 of CTA 2010 (write-off of government investment).

(5)

Sub-paragraph (6) applies for determining whether there is an amount which falls to be carried forward under section 76(12) of ICTA.

(6)

Disregard any amounts brought forward from an earlier chargeable period and treated for the purposes of section 76 of that Act as expenses payable which fall to be brought into account—

(a)

in accordance with Step 7 in subsection (7) of that section, by virtue of a previous application of subsection (12) or (13) of that section, or

(b)

in accordance with Step 3 in subsection (7) of that section, by virtue of F22section 391(3)(b) of CTA 2009 (loan relationships deficit carried forward and so brought into account).

15

(1)

This paragraph applies where the qualifying activity is managing the investments of a company with investment business.

(2)

The amount of the loss that is unrelieved is the amount of the loss (see paragraph 8), reduced by the amount of—

(a)

any loss that was or could have been surrendered under F23Part 5 of CTA 2010 (surrender of relief to group or consortium members), and

(b)

any amount set off against the loss under F24Chapter 7 of Part 4 of that Act (write-off of government investment).

(3)

For this purpose, no account is to be taken of any amount brought forward from an earlier chargeable period under F25section 1223 of CTA 2009.

16

(1)

This paragraph applies where the qualifying activity is life assurance business and the profits of that business are charged to tax under the I minus E basis.

(2)

The amount of the unrelieved loss is the amount of the loss (see paragraph 9), reduced by—

(a)

any loss surrendered under F26Chapter 4 of Part 14 of CTA 2009 (tax credits for remediation of contaminated land), and

(b)

any amount set off against the loss under F27Chapter 7 of Part 4 of CTA 2010 (write-off of government investment).

(3)

For this purpose, no account is to be taken of any amounts brought forward from an earlier chargeable period and treated for the purposes of section 76 of ICTA as expenses payable which fall to be brought into account for the period in question—

(a)

in accordance with Step 7 in subsection (7) of that section, by virtue of a previous application of subsection (12) or (13) of that section, or

(b)

in accordance with Step 3 in subsection (7) of that section, by virtue of F28section 391(3)(b) of CTA 2009 (loan relationships deficit carried forward and so brought into account).