9(1)This sub-paragraph applies if—
(a)for the purposes of corporation tax a banking company has profits (“pre-commencement profits”) for an accounting period ending before 1 April 2015,
(b)in the absence of this paragraph the banking company would, for corporation tax purposes, be entitled to deduct from the pre-commencement profits for the accounting period an amount in respect of any relevant carried-forward losses,
(c)the pre-commencement profits arise as a result of any arrangements entered into on or after 3 December 2014, and
(d)the main purpose, or one of the main purposes, of the arrangements is to secure a corporation tax advantage as a result of the fact that Chapter 3 of Part 7A of CTA 2010 (inserted by this Schedule) is not to have effect for the accounting period for which the deduction would be made.
(2)If sub-paragraph (1) applies, the banking company is not entitled to deduct from the pre-commencement profits any amount in respect of the relevant carried-forward losses.
(3)Sub-paragraph (1) does not apply in relation to a banking company which falls within section 269B(5)(b) of CTA 2010 (inserted by this Schedule).
(4)In this paragraph—
“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);
“corporation tax advantage” means—
a relief from corporation tax or increased relief from corporation tax,
a repayment of corporation tax or increased repayment of corporation tax,
the avoidance or reduction of a charge to corporation tax or an assessment to corporation tax,
the avoidance of a possible assessment to corporation tax, or
the deferral of a payment of corporation tax or advancement of a repayment of corporation tax.
(5)Terms used in this paragraph and in Chapter 3 of Part 7A of CTA 2010 have the same meaning in this paragraph as in that Chapter; and, so far as necessary for the purposes of this sub-paragraph, that Part is to be treated as having come into force on the same day as this paragraph.
(6)This paragraph is treated as having come into force on 3 December 2014.
(7)Sub-paragraph (8) applies where a company has an accounting period beginning before 1 April 2015 and ending on or after that date (“the straddling period”).
(8)For the purposes of this paragraph—
(a)so much of the straddling period as falls before 1 April 2015, and so much of that period as falls on or after that date, are treated as separate accounting periods, and
(b)the profits or losses of the company for the straddling period are apportioned to the two separate accounting periods—
(i)in accordance with section 1172 of CTA 2010 (time basis), or
(ii)if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.