Textual Amendments
F1Pt. 15D inserted (with effect in accordance with Sch. 8 para. 17(1)(a) of the amending Act) by Finance Act 2016 (c. 24), Sch. 8 para. 1
Modifications etc. (not altering text)
C1Pt. 15D modified (with application in accordance with s. 19(1)(4) of the amending Act) by Finance Act 2022 (c. 3), s. 19(1)(4)
(1)Sections 1217SA to 1217SC apply to a company which is treated under section 1217Q(2) or (5) as carrying on a separate trade in relation to the production of a concert or concert series.
(2)In those sections—
(a)“the completion period” means the accounting period in which the company ceases to carry on the separate orchestral trade;
(b)“loss relief” includes any means by which a loss might be used to reduce the amount in respect of which a company, or any other person, is chargeable to tax.
(1)[F2This section] applies if a loss is made by the company in the separate orchestral trade in an accounting period preceding the completion period.
(2)The loss is not available for loss relief, except to the extent that the loss may be carried forward under section 45 [F3or 45B] of CTA 2010 to be [F4deducted from] profits of the separate orchestral trade in a subsequent period.
[F5(3)If the loss is carried forward under section 45 or 45B of CTA 2010 and deducted from profits of the separate orchestral trade in a subsequent period, the deduction is to be ignored for the purposes of section 269ZB of CTA 2010 (restriction on deductions from trading profits).]
Textual Amendments
F2Words in s. 1217SA(1) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 44(2)
F3Words in s. 1217SA(2) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 44(3)(a)
F4Words in s. 1217SA(2) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 44(3)(b)
F5S. 1217SA(3) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 44(4)
Modifications etc. (not altering text)
C2S. 1217SA modified by 2010 c. 4, s. 357UO (as inserted (with effect in accordance with Sch. 8 para. 18(1) of the amending Act) by Finance Act 2016 (c. 24), Sch. 8 para. 14)
(1)Subsection (2) applies if a loss made in the separate orchestral trade is carried forward under section 45 [F6or 45B] of CTA 2010 to the completion period.
(2)So much (if any) of the loss as is not attributable to orchestra tax relief (see subsection (4)) may be treated for the purposes of [F7section 37 and Part 5 of CTA 2010] as if it were a loss made in the completion period.
(3)If a loss is made in the separate orchestral trade in the completion period, the amount of the loss that may be—
(a)deducted from total profits of the same or an earlier period under section 37 of CTA 2010, or
(b)surrendered as group relief under Part 5 of that Act,
is restricted to the amount (if any) that is not attributable to orchestra tax relief (see subsection (4)).
(4)The amount of a loss in any period that is attributable to orchestra tax relief is found by—
(a)calculating what the amount of the loss would have been if there had been no additional deduction under Chapter 3 in that or any earlier period, and
(b)deducting that amount from the total amount of the loss.
(5)This section does not apply to loss surrendered, or treated as carried forward, under section 1217SC (terminal losses).
Textual Amendments
F6Words in s. 1217SB(1) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 45(2)
F7Words in s. 1217SB(2) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 45(3)
Modifications etc. (not altering text)
C3S. 1217SB modified by 2010 c. 4, s. 357UP (as inserted (with effect in accordance with Sch. 8 para. 18(1) of the amending Act) by Finance Act 2016 (c. 24), Sch. 8 para. 14)
(1)This section applies if—
(a)the company ceases to carry on the separate orchestral trade, and
(b)if the company had not ceased to carry on that trade, it could have carried forward an amount under section 45 [F8or 45B] of CTA 2010 to be set against profits of that trade in a later period (“the terminal loss”).
Below in this section the company is referred to as “company A” and the separate orchestral trade is referred to as “trade 1”.
(2)If company A—
(a)is treated under section 1217Q(2) or (5) as carrying on a separate trade in relation to the production of another concert or concert series (“trade 2”), and
(b)is carrying on trade 2 when it ceases to carry on trade 1,
company A may (on making a claim) make an election under subsection (3).
(3)The election is to have the terminal loss (or a part of it) treated[F9—
(a)in a case where the loss could have been carried forward under section 45 of CTA 2010 had trade 1 not ceased, as if it were a loss carried forward under that section to be set against the profits of trade 2 of the first accounting period beginning after the cessation and so on, and
(b)in a case where the loss could have been carried forward under section 45B of CTA 2010 had trade 1 not ceased, as if it were a loss made in trade 2 which has been carried forward under that section to the first accounting period beginning after the cessation.]
(4)Subsection (5) applies if—
(a)another company (“company B”) is treated under section 1217Q(2) or (5) as carrying on a separate trade (“company B's trade”) in relation to the production of another concert or concert series,
(b)company B is carrying on that trade when company A ceases to carry on trade 1, and
(c)company B is in the same group as company A for the purposes of Part 5 of CTA 2010 (group relief).
(5)Company A may surrender the loss (or a part of it) to company B.
(6)On the making of a claim by company B the amount surrendered is treated[F10—
(a)in a case where the amount could have been carried forward under section 45 of CTA 2010 had trade 1 not ceased, as if it were a loss carried forward by company B under that section to be set against the profits of company B's trade of the first accounting period beginning after the cessation and so on, and
(b)in a case where the amount could have been carried forward under section 45B of CTA 2010 had trade 1 not ceased, as if it were a loss made in company B's trade which has been carried forward under that section to the first accounting period beginning after the cessation.]
(7)The Treasury may by regulations make administrative provision in relation to the surrender of a loss under subsection (5) and the resulting claim under subsection (6).
(8)“Administrative provision” means provision corresponding, subject to such adaptations or other modifications as appear to the Treasury to be appropriate, to that made by Part 8 of Schedule 18 to FA 1998 (company tax returns: claims for group relief).
[F11(9)A deduction under section 45 or 45B of CTA 2010 which is made in reliance on this section is to be ignored for the purposes of section 269ZB of that Act (restriction on deductions from trading profits).]]
Textual Amendments
F8Words in s. 1217SC(1)(b) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 46(2)
F9Words in s. 1217SC(3) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 46(3)
F10Words in s. 1217SC(6) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 46(4)
F11S. 1217SC(9) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 46(5)
Modifications etc. (not altering text)
C4S. 1217SC modified by 2010 c. 4, s. 357UQ (as inserted (with effect in accordance with Sch. 8 para. 18(1) of the amending Act) by Finance Act 2016 (c. 24), Sch. 8 para. 14)