(1)This section applies if under section 1045 a company is treated as making a trading loss in an accounting period.
(2)The trading loss may not be [F1deducted from] profits of a preceding accounting period under [F2section 37(3)(b) or 42 of CTA 2010] unless the company is entitled to relief under section 1045 for the earlier period.
(3)Subsection (4) applies if—
(a)the company begins, in the accounting period or a later period, to carry on a trade, and
(b)the trade is derived from the research and development in relation to which the relief mentioned in subsection (1) was obtained.
(4)In that case, so far as—
(a)the company has not obtained relief in respect of the trading loss under any other provision, and
(b)the loss has not been surrendered under [F3Part 5 of CTA 2010 (group relief)],
the trading loss is to be treated as if it were a loss of that trade brought forward under [F4section 45 of CTA 2010] (relief of trading losses against future trading profits).
(5)Subsection (4) is subject to section 1062 (restriction on losses carried forward where tax credit claimed).
Textual Amendments
F1Words in s. 1048(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 667(2)(a) (with Sch. 2)
F2Words in s. 1048(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 667(2)(b) (with Sch. 2)
F3Words in s. 1048(4)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 667(3)(a) (with Sch. 2)
F4Words in s. 1048(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 667(3)(b) (with Sch. 2)