Corporation Tax Act 2010

[F1 730C Disallowance of deductible amounts: relevant claims U.K.

(1) This section applies where a relevant claim is made for an accounting period ending on or after the relevant day.

(2) “Relevant claim” means a claim by C, or a company connected with C, under—

(a) section 37 (relief for trade losses against total profits), F2 ...

F3 (aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) Chapter4 of Part 5 (group relief)[F4 , or

(c) Chapter 3 of Part 5A (group relief for carried-forward losses).]

(3) [F5 In the case of a relevant claim within subsection (2)(a) or (b), a deductible amount that meets conditions A and B (a “restricted deductible amount”)] may not be the subject of, or brought into account as a deduction in, the claim.

[F6 (3A) A relevant claim within subsection (2)(c) may not be made in respect of a loss or other amount which has been carried forward under any provision mentioned in [F7 paragraph (a) or (b)] of section 188BB(1), so far as that amount is made up of an amount which was (in a previous accounting period) a restricted deductible amount.]

(4) But [F8 subsections (3) and (3A) do] not exclude any amount which could have been the subject of, or brought into account as a deduction in, [F9 or as a result of, the claim concerned] in the absence of the qualifying change.

(5) Condition A is that, on the relevant day, it is highly likely that the amount, or any part of it, would (disregarding this Part) be the subject of, or brought into account as a deduction in, a relevant claim for an accounting period ending on or after the relevant day.

(6) Any question as to what is “highly likely” on the relevant day for the purposes of subsection (5) is to be determined having regard to—

(a) any arrangements made on or before that day, and

(b) any events that take place on or before that day.

(7) Condition B is that the main purpose, or one of the main purposes, of change arrangements is for the amount (whether or not together with other deductible amounts) to be the subject of, or brought into account as a deduction in, a relevant claim for an accounting period ending on or after the relevant day.

[F10 (7A) For the purposes of determining how much of an amount carried forward as mentioned in subsection (3A) is made up of an amount which was (in a previous accounting period) a restricted deductible amount, assume that in previous accounting periods amounts have been brought into account as deductions (see section 730B(2)) in the order that results in the greatest amount being excluded by subsection (3A).]

(8) “Change arrangements” means any arrangements made to bring about, or otherwise connected with, the qualifying change.

(9) This section does not apply to a deductible amount if, and to the extent that—

(a) section 730D(2) applies to it, or

(b) for the purposes of section 432, a loss, or any part of a loss, to which section 433(2) applies derives from it.]

Textual Amendments

F1 Pt. 14A inserted (with effect in accordance with Sch. 14 para. 3 of the amending Act) by Finance Act 2013 (c. 29), Sch. 14 para. 1

F2 Word in s. 730C(2)(a) omitted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 4 paras. 92(2)(a), 172(a) (with Sch. 4 para. 92(7))

F3 S. 730C(2)(aa) omitted (with effect in accordance with Sch. 10 para. 32 of the amending Act) by virtue of Finance Act 2019 (c. 1), Sch. 10 para. 31(1)(a)

F4 S. 730C(2)(c) and word inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 paras. 92(2)(b), 172(c) (with Sch. 4 para. 92(7))

F5 Words in s. 730C(3) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 92(3) (with Sch. 4 para. 92(7))

F6 S. 730C(3A) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 92(4) (with Sch. 4 para. 92(7))

F7 Words in s. 730C(3A) substituted (with effect in accordance with Sch. 10 para. 32 of the amending Act) by Finance Act 2019 (c. 1), Sch. 10 para. 31(1)(b)

F8 Words in s. 730C(4) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 92(5)(a) (with Sch. 4 para. 92(7))

F9 Words in s. 730C(4) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 92(5)(b) (with Sch. 4 para. 92(7))

F10 S. 730C(7A) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 92(6) (with Sch. 4 para. 92(7))