Part 8Oil activities

Chapter 4Calculation of profits

Relief

C1303BF1Carry forward of losses against subsequent profits

1

This section applies if—

a

in an accounting period beginning on or after 1 April 2017 (“the loss-making period”) a company makes a non-decommissioning loss in a ring fence trade,

b

relief under—

  • section 37 or 42, or

  • Part 5 (group relief),

is not given for an amount of the loss (“the unrelieved amount”), and

c

the company continues to carry on the ring fence trade in the next accounting period (“the later period”).

2

The unrelieved amount is carried forward to the later period.

3

Relief for the unrelieved amount is given to the company in the later period if the company makes a profit in the trade for the later period.

4

The relief is given by reducing the profits of the trade in the later period by the unrelieved amount.

5

Relief under this section is subject to restriction or modification in accordance with the provisions of the Corporation Tax Acts.