SCHEDULES

SCHEDULE 4Corporate capital losses

PART 1Corporate capital loss restriction

Restriction on deduction from chargeable gains: main provisions

3

1

Section 269ZC (restriction on deductions from non-trading profits) is amended in accordance with this paragraph.

2

In subsection (2), for “the relevant maximum” substitute “the difference between—

a

the relevant maximum, and

b

the amount of any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods).”

3

For subsection (3) substitute—

3

In this section the “relevant maximum” means the sum of—

a

50% of the company's total relevant non-trading profits for the accounting period, and

b

the amount of the company's total non-trading profits deductions allowance for the accounting period.

3A

A company's “total non-trading profits deductions allowance” for the accounting period is the sum of—

a

the company's non-trading income profits deductions allowance (see subsection (5)), and

b

the company's chargeable gains deductions allowance (see section 269ZBA(5)).

4

In subsection (4), for “relevant non-trading profits” substitute “ total relevant non-trading profits ”.

5

In subsection (5) for “ “non-trading profits deductions allowance””, in both places it occurs, substitute “ “non-trading income profits deductions allowance” ”.

6

In subsection (6)—

a

in the words before paragraph (a), for “ “non-trading profits deductions allowance”” substitute “ “non-trading income profits deductions allowance” ”, and

b

for paragraph (b) substitute—

b

the total of any amounts specified for the period under—

i

section 269ZB(7)(a) (trading profits deductions allowance),

ii

section 269ZBA(5)(a) (chargeable gains deductions allowance), and

iii

in the case of an insurance company, section 269ZFC(5)(a) (BLAGAB deductions allowance).

7

In subsection (8), for “relevant non-trading profits” substitute “ qualifying non-trading income profits and qualifying chargeable gains ”.