4(1)This paragraph applies if—
(a)a company ceases to carry on a ring fence trade in a qualifying accounting period, and
(b)the company has made a terminal qualifying levy loss in the trade.
(2)Paragraphs 1(3) and 2(1) and (3) have effect in relation to the terminal qualifying levy loss as if the references to 12 months were references to 3 years.
(3)The following are terminal qualifying levy losses made in the trade—
(a)the whole of any qualifying levy loss made by the company in the trade in a qualifying accounting period that begins during the final 12 months, and
(b)the overlapping proportion of any qualifying levy loss made by the company in the trade in a qualifying accounting period that ends, but does not begin, during the final 12 months.
(4)The overlapping proportion is the same as the proportion that the part of the accounting period falling within the final 12 months bears to the whole of the accounting period.
(5)“The final 12 months” means the period of 12 months ending when the company ceases to carry on the trade.
(6)This paragraph does not apply if—
(a)on the company ceasing to carry on the trade, any of the activities of the trade begin to be carried on by a person who is not (or by persons any or all of whom are not) chargeable to the levy, and
(b)the company’s ceasing to carry on the trade arises directly or indirectly in connection with, or otherwise in consequence of, arrangements the main purpose, or one of the main purposes, of which is to secure that the preceding provisions of this paragraph apply in relation to a loss by reason of the cessation.
(7)For this purpose “arrangements” includes any transaction, series of transactions, scheme or arrangement, whether or not legally enforceable.
Commencement Information
I1Sch. 1 para. 4 in force at Royal Assent