(1)Section 107 of CTA 2010 (surrender of losses etc) is amended as follows.
(2)After subsection (1) insert—
“(1A)If the surrendering company is established in the EEA (within the meaning of section 134A), it may surrender a loss or other amount under this Chapter only so far as conditions A and B are met.
Subsection (6A) imposes restrictions on a surrender under this subsection.”
(3)In subsection (2) for “The” substitute “ In any other case, the ”.
(4)After subsection (6) insert—
“(6A)A loss or other amount may not be surrendered by virtue of subsection (1A) if and to the extent that it, or any amount brought into account in calculating it, corresponds to, or is represented in, amounts within subsection (6B).
(6B)An amount is within this subsection if, for the purposes of non-UK tax chargeable under the law of a territory, the amount is (in any period) deducted from or otherwise allowed against non-UK profits of any person.”
(5)In subsection (7), after “subsection (6)” insert “ or (6B) ”.
(6)The amendments made by this section have effect in relation to accounting periods beginning on or after 1 April 2013.
(7)But for this purpose an accounting period beginning before, and ending on or after, 1 April 2013 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.
(8)An apportionment for the purposes of subsection (7) must be made in accordance with section 1172 of CTA 2010 (time basis) or, if that method produces a result that is unjust or unreasonable, on a just and reasonable basis.