The Postal Services Act 2011 (Taxation) Regulations 2012

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.