SCHEDULES
C1SCHEDULE 5Non-UK resident companies carrying on UK property businesses etc
PART 3Commencement and transitional provisions
Transitional provisions
I137
1
This paragraph applies if—
a
in a tax year ending before the commencement date a company makes a loss in a UK property business that is within the charge to income tax,
b
relief for the purposes of income tax is not given to the company for an amount of the loss (“the unrelieved amount”), and
c
on the commencement date the UK property business ceases to be within the charge to income tax and comes within the charge to corporation tax as a result of section 5(3A) of CTA 2009.
2
Relief for the purposes of corporation tax is given to the company under this paragraph for the unrelieved amount.
3
For this purpose—
a
the unrelieved amount is carried forward to post-commencement accounting periods of the company (for so long as the company continues to carry on the UK property business), and
b
the profits of any such accounting period that are mentioned in sub-paragraph (4) are to be reduced by the unrelieved amount (so far as that amount cannot be used under this paragraph to reduce the profits of an earlier period).
4
The profits are—
a
profits of the UK property business, and
b
profits arising from loan relationships or derivative contracts that the company is a party to for the purposes of that business.
5
In this paragraph “post-commencement accounting period” means an accounting period ending after the commencement date.
Sch. 5 modified (22.7.2020) by Finance Act 2020 (c. 14), Sch. 6 para. 10