Part 9Leasing plant or machinery
Chapter 5Sales of lessors: anti-avoidance provisions
433Restrictions applying to the restricted loss amount
1
The restrictions in subsections (2), (5) and (6) apply to the restricted loss amount.
2
Relief is not to be given to the company under any provision specified in subsection (3) in respect of the restricted loss amount, except by way of set off against any relevant leasing income (see subsection (4)).
3
Those provisions are—
a
section 45 (carry forward of trade loss against subsequent trade profits),
b
section 62 (relief for losses made in UK property business),
c
section 63 (company with investment business ceasing to carry on UK property business),
d
section 66 (relief for losses made in overseas property business), and
e
section 91 (relief for losses from miscellaneous transactions).
4
In subsection (2) “relevant leasing income” means any income deriving from any plant or machinery lease which—
a
is not an excluded lease of background plant or machinery for a building (see section 437(3)), and
b
is entered into before the day on which the company is treated as incurring the expense mentioned in section 432(1)(a).
5
If the business carried on by the company is a trade, relief is not to be given to the company under section 37 (relief for trade losses against total profits) in respect of the restricted loss amount.
6
The restricted loss amount is not available for set off by way of group relief in accordance with Chapter 2 of Part 5 (surrender of company’s losses etc for an accounting period).