Part 4 Loss relief

Chapter 2 Trade losses

Trade loss relief against total profits

40 Ring fence trades: extension of periods for which relief may be given
(1) This section applies if—
(a) in an accounting period a company makes a loss in a ring fence trade (as defined in section 162 of CAA 2001),
(b) the accounting period is an accounting period for which an allowance under section 164 of CAA 2001 is made to the company, and
(c) not all the loss is a terminal loss (see section 39(3) above).
(2) Sections 37(3)(b) and 38(1) and (3) have effect in relation to the loss (so far as it is not a terminal loss) as if the references to 12 months were references to 3 years.
(3) But if the loss exceeds the allowance mentioned in subsection (1)(b), subsection (2) applies in relation to the loss only so far as it does not exceed that allowance.
(4) This section is subject to section 41.