Finance Act 2021

PART 2 Other amendments of CTA 2010

Amendments of section 137 of CTA 2010

4 In section 137 of CTA 2010 (deductions from total profits for claims for group relief), in subsection (5)—

(a) omit paragraph (d);

(b) at the end insert—

“(e) of a type to which section 269ZB(2), 269ZBA(2), 269ZC(2) or 269ZD(2) of Part 7ZA (restrictions on deductions for carried-forward losses and other amounts) could apply.”

Amendments of Part 5A of CTA 2010

5 Part 5A of CTA 2010 (group relief for carried-forward losses) is amended as follows.

6 In section 188BE (restriction on surrendering losses etc where surrendering company could use them itself), for the existing text substitute—

“The surrendering company may not surrender under this Chapter any loss or other amount carried forward to the surrender period to the extent that the loss or other amount could be deducted from the total profits of the company for the period at Step 2 of section 4(2).”

7 (1) Section 188DD (claimant company’s relevant maximum for overlapping period) is amended as follows.

(2) In subsection (3), for “269ZD(6)” substitute “269ZDA”.

(3) In subsection (3A)—

(a) in paragraph (a), for “qualifying trading profits and qualifying non-trading profits” substitute “modified total profits”;

(b) in paragraph (b), for “in determining” substitute “which could be relieved against”.

Amendments of Part 7ZA of CTA 2010

8 Part 7ZA of CTA 2010 is amended as follows.

9 In section 269ZF(3) (steps for determining a company’s qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains), in paragraph (2) of step 2—

(a) for “sum,” substitute “sum—

(a)” ;

(b) at the end insert “, and

(b) ignore any amount (or any part of any amount) which could be relieved against the company’s total profits of the accounting period on the making of a claim in respect of the amount (or part) if a claim is not in fact made in respect of it.”

10 In section 269ZFA (“relevant profits” for purposes of section 269ZD), in subsection (1), after paragraph (b) insert—

“But if the allowance mentioned in paragraph (b) exceeds the profits mentioned in paragraph (a), the company’s “relevant profits” for the accounting period are nil.”

11 (1) Section 269ZT (group allowance allocation statement: submission) is amended as follows.

(2) In subsection (1), for “and (3)” substitute “to (3A)”.

(3) After subsection (3) insert—

“(3A) A company need not submit a group allowance allocation statement to HMRC for an accounting period if the statement would, if submitted, allocate no amount of group deductions allowance in accordance with section 269ZV(3)(f).”

(4) In subsection (4), for the words from “before” to the end substitute “on or before whichever is the latest of the following dates—

(a) the first anniversary of the filing date for the company tax return for the accounting period to which the statement relates;

(b) if notice of enquiry (within the meaning of Schedule 18 to FA 1998) is given into a company tax return of a company for an accounting period for which an amount of group deductions allowance is, or could be, allocated by the statement, 30 days after the enquiry is completed;

(c) if, after such an enquiry, an officer of Revenue and Customs amends the return under paragraph 34(2) of that Schedule, 30 days after the notice of amendment is issued;

(d) if an appeal is brought against such an amendment, 30 days after the date on which the appeal is finally determined.”

12 In section 269ZV(5) (maximum amount of group deductions allowance that may be allocated to a listed company by a group allowance allocation statement)—

(a) In the definition of “DAP”—

(i) in paragraph (a), after “period” insert “on which the nominee was the nominated company in relation to the group”;

(ii) in paragraph (b), after “which the” insert “listed”;

(b) in the definition of “DNAP”, after “period” insert “on which the nominee was the nominated company in relation to the group”.

Amendments of Chapter 7 of Part 14 of CTA 2010

13 Chapter 7 of Part 14 of CTA 2010 (meaning of “change in the ownership of a company”) is amended as follows.

14 In section 719(4A) (certain acquisitions giving rise to a change in the ownership of a company) for “2D” substitute “2E”.

15 In section 721(4) (things other than ordinary share capital that may be taken into account in determining change in ownership), after “2D,” insert “2E,”.