Finance (No. 2) Act 2017

CTA 2010

167 (1) Chapter 5 of Part 9 (sales of lessors: anti-avoidance provisions) is amended as follows.

(2) In section 432 (introduction to section 433)—

(a) in subsection (1), in the words before paragraph (a), for “Section 433 applies” substitute “Sections 433 and 433A apply”, and

(b) in subsection (2) after “that section” insert “and section 433A”.

(3) In section 433 (restrictions on relief for expenses treated as incurred under Chapter 3 or 4)—

(a) in subsection (3)—

(i) in paragraph (a) after “of” insert “pre-1 April 2017”,

(ii) after that paragraph insert—

“(ab) section 45B (carry forward of post-1 April 2017 trade loss against subsequent trade profits),”

(b) in subsection (5) after “profits)” insert “or section 45A (carry forward of trade loss against total profits)”, and

(c) in subsection (6)—

(i) after “set off” insert “—

(a)”, and

(ii) at the end insert “, or

(b) by way of group relief for carried-forward losses in accordance with Chapter 2 of Part 5A (surrender of company’s carried forward losses)”.

(4) After section 433 insert—

“433A Restrictions not applying to the restricted loss amount

(1) Any deduction made under section 45 or 45B in respect of the restricted loss amount is to be ignored for the purposes of the restriction in section 269ZB (restriction on sum of deductions from trading profits).

(2) Any deduction made under section 62 or 63 in respect of the restricted loss amount is to be ignored for the purposes of the restriction in section 269ZD (restriction on sum of deductions from total profits).”