Corporation Tax Act 2010 (c. 4)

Part 4 U.K. Loss relief

Chapter 2 U.K. Trade losses

Carry forward of trade loss relief U.K.

46 Use of trade-related interest and dividends if insufficient trade profits U.K.

(1) This section applies for the purposes of section 45 if—

(a) the company carries on the trade in an accounting period (“the later period”), and

(b) relief cannot be fully given in the later period for the unrelieved loss (or for that loss so far as it cannot be relieved in earlier periods) because there are no profits, or insufficient profits, of the trade of the later period.

(2) Treat any interest or dividends within subsection (3) as profits of the trade of the later period.

(3) Interest or dividends are within this subsection if they—

(a) are from investments, and

(b) would be brought into account as trading receipts in calculating the profits of the trade of the later period but for the fact that they have been subjected to tax under other provisions of the Tax Acts.