Part 22Miscellaneous provisions

Chapter 1Transfers of trade without a change of ownership

Effect of Chapter in relation to transfers to which it applies

944Modified application of Chapter 2 of Part 4

1

If this Chapter applies to a transfer of a trade, Chapter 2 of Part 4 (relief for trade losses) has effect subject to subsections (2) and (3).

2

Section 39 (terminal losses: extension of periods for which relief may be given) does not apply in relation to a loss made by the predecessor in the transferred trade.

3

Relief under section 45 (carry forward of trade loss against subsequent trade profits) is given to the successor in relation to a loss—

a

which is made by the predecessor in the transferred trade, and

b

for which relief would have been given under that section to the predecessor had it continued to carry on that trade.

4

Subsection (3) is subject to—

a

any claim made by the predecessor under section 37 (including a case where section 42 applies), and

b

section 945.