Finance Act 2012

Valid from 17/07/2012

78 Section 76: meaning of other expressions U.K.

(1) This section explains for the purposes of section 76 what is meant by—

• “other relevant rules”,

• “deemed BLAGAB management expenses for the accounting period”,

• “expenses reversed in the accounting period”, and

• “BLAGAB trade loss relieved for the accounting period”.

(2) An expense is deductible under another “relevant rule” if—

(a) it is deductible as a result of section 92(3),

(b) it is deductible in calculating, for corporation tax purposes, the profits of a property business, or

(c) it is deductible as a result of section 272 of CTA 2009 in calculating income from the letting of rights to work minerals in the United Kingdom.

(3) An amount is a “deemed BLAGAB management expense for the accounting period” if it is treated as such for the purposes of section 76 as a result of—

• section 79 or paragraph 33(2) of Schedule 17 (spreading of acquisition expenses),

• section 83 (general annuity business),

• section 87(3) (losses from property businesses where land held for purposes of long-term business),

• section 88(6) (excess of debits in respect of intangible fixed assets),

• section 89(2) (excess of miscellaneous losses),

• paragraph 16(1) of Schedule 7 to FA 1991 (transitional relief for old general annuity contracts),

• section 256(2)(a) of CAA 2001 (allowances in respect of plant or machinery consisting of management asset),

• section 391(3) of CTA 2009 (loan relationships: carry forward of surplus to next accounting period),

• section 1080(2) of CTA 2009 (additional relief for expenditure on research and development),

• section 1162 of CTA 2009 (additional relief for remediation of contaminated or derelict land), or

• section 783(6), 785(4) or 791(6) of CTA 2010 (manufactured dividends).

(4) “Expenses reversed in the accounting period” means the total amount of the expenses—

(a) which were relieved in any previous accounting period in accordance with step 1 (as read with step 2) or step 3 of section 76, but

(b) which are subsequently reversed in the accounting period.

(5) A “BLAGAB trade loss relieved for the accounting period” means so much of a BLAGAB trade loss of the company for the accounting period for which relief is given under—

(a) section 37 of CTA 2010 (relief for trade losses against total income), as applied by section 123, or

(b) Chapter 4 of Part 5 of that Act (group relief), as applied by section 125.