PART 2Corporation Tax
De-recognition of the obligations and assets of the RMPP
3.—(1) Paragraph (2) applies where—
(a)RMGL or POL recognises a debit or credit in its accounts, in accordance with generally accepted accounting practice; and
(b)the debit or credit is recognised in that company’s accounts as a consequence of—
(i)the Accrued Rights Transfer;
(ii)the division of the RMPP in accordance with an order made under section 18 of the Act (division of the RMPP into different sections);
(iii)an amendment of the RMPP in accordance with an order made under section 19 of the Act (amendments of the RMPP) in connection with an order under section 17 or section 18 of the Act; or
(iv)the Assets Transfer.
(2) In computing the profits, gains or losses of that company for the purposes of corporation tax, no amount is to be brought into account in respect of the debit or credit.
(3) In this regulation—
(a)“accounts” has the meaning given by section 17(1) of the Corporation Tax Act 2010(1) (interpretation); and
(b)“generally accepted accounting practice” has the same meaning as in section 1127 of the Corporation Tax Act 2010 (generally accepted accounting practice and related expressions).
Extinguishment of relevant losses of RMGL
4.—(1) With effect from the first day of the first qualifying accounting period, the relevant losses of RMGL are to be treated for the purposes of corporation tax as extinguished.
(2) The amount of the relevant losses that are to be treated as extinguished in accordance with paragraph (1) is the sum of the relevant loss incurred in each accounting period prior to the final accounting period.
(3) In this regulation a loss is a relevant loss for an accounting period (“the relevant accounting period”) if—
(a)the loss was incurred in the trade carried on by RMGL in the relevant accounting period; and
(b)the loss is included in the losses carried forward to the first qualifying accounting period as an unrelieved loss in accordance with section 45 of the Corporation Tax Act 2010 (carry forward of trade loss against subsequent trade profits),
but this paragraph is subject to paragraph (4).
(4) A loss is not a relevant loss for the purposes of paragraph (3) to the extent that it is attributable to deductions in the computation of the loss for an accounting period for contributions that are excluded contributions.
(5) For the purposes of this regulation—
(a)losses incurred by RMGL are the losses computed in accordance with section 47 of the Corporation Tax Act 2009 (losses calculated on the same basis as profits); and
(b)a loss is an unrelieved loss for an accounting period if no relief has been given in respect of the loss under section 37 (relief for trade losses against total profits) or Part 5 of the Corporation Tax Act 2010 (group relief).
Extinguishment of trading losses of POL
5.—(1) With effect from the first day of the first qualifying accounting period, the relevant losses of POL are to be treated for the purposes of corporation tax as extinguished.
(2) In this regulation “relevant losses” means the aggregate of the losses incurred in each accounting period prior to the final accounting period calculated in accordance with paragraph (3). This paragraph is subject to paragraph (4).
(3) The amount of the loss for each accounting period (“the relevant accounting period”) is found by—
(a)calculating—
(i)the amount of the loss incurred in the trade carried on by POL in the relevant accounting period which is carried forward to the first qualifying accounting period as an unrelieved loss in accordance with section 45 of the Corporation Tax Act 2010 (“L”); and
(ii)the amount of deductions in the computation of the loss for that relevant accounting period for, or in connection with, contributions in respect of qualifying members of the RMPP (“P”); and
(b)comparing the figures given by L and P for each accounting period and where—
(i)L is greater than P, the relevant loss for that period is the amount equal to P;
(ii)L is less than P, the relevant loss for that period is the amount equal to L; and
(iii)L and P are the same, the relevant loss for that period is the amount equal to P.
(4) A loss is not a relevant loss for the purposes of this regulation to the extent that it is attributable to deductions in the computation of the loss for an accounting period for payments in relation to contributions that are excluded contributions.
(5) For the purposes of this regulation—
(a)losses incurred by POL are the losses computed in accordance with section 47 of the Corporation Tax Act 2009; and
(b)a loss is an unrelieved loss for an accounting period if no relief has been given in respect of the loss under section 37 or Part 5 of the Corporation Tax Act 2010.
Exemption from corporation tax
6.—(1) BCL is exempt from corporation tax for any accounting period that begins and ends before 1st April 2015.
(2) For the purposes of this regulation “BCL” means the private company limited by shares incorporated on 8th February 2012 with the registered number 07941521 and with the name BIS (Postal Services Act 2011) Company Limited.