Textual Amendments
F1Sch. A1 inserted (with effect in accordance with Sch. 25 para. 9 of the amending Act) by Finance Act 2008 (c. 9), Sch. 25 para. 5
10U.K.Paragraphs 11 to 16 apply for the interpretation of paragraph 1(3)(a).
11(1)This paragraph applies where the qualifying activity is a trade or a furnished holiday lettings business and paragraph 14 or 16 does not apply.U.K.
(2)The amount of the loss that is unrelieved is the amount of the loss, reduced by the amount of—
(a)any relief that was or could have been obtained by the company making a claim under section 393A(1)(a) of ICTA to set the loss against profits of whatever description of the same chargeable period,
(b)any other relief obtained by the company making a claim under section 393A(1)(b) or 393B(3) of that Act (losses set against profits of an earlier chargeable period),
(c)any loss that was or could have been surrendered under section 403(1) of that Act (surrender of relief to group or consortium members),
(d)any loss surrendered under a relevant tax credit provision, and
(e)any amount set off against the loss under section 400 of that Act (write-off of government investment).
(3)For this purpose no account is to be taken of any losses—
(a)brought forward from an earlier chargeable period under section 393(1) of ICTA,
(b)carried back from a later chargeable period under section 393A(1)(b) or 393B(3) of that Act, or
(c)incurred on a leasing contract (within the meaning of section 395 of that Act) in circumstances to which that section applies.
(4)In sub-paragraph (2)(d) “relevant tax credit provision” means—
(a)Part 2 of Schedule 20 to FA 2000 (tax credits for expenditure on research and development),
(b)Part 3 of Schedule 22 to FA 2001 (tax credits for remediation of contaminated land),
(c)Part 2 of Schedule 13 to FA 2002 (tax credits for expenditure on vaccine research), and
(d)Part 1 of Schedule 5 to FA 2006 (film tax credits).
12(1)This paragraph applies where the qualifying activity is a Schedule A business other than a furnished holiday lettings business and paragraph 14 does not apply.U.K.
(2)The amount of the loss that is unrelieved is the amount of the loss, reduced by the amount of—
(a)any relief that was or could have been obtained by the company making a claim under section 392A(1) of ICTA to set the loss against profits of whatever description of the same chargeable period,
(b)any loss that was or could have been surrendered under section 403(1) of that Act (surrender of relief to group or consortium members),
(c)any loss surrendered under Part 3 of Schedule 22 to FA 2001 (tax credits for remediation of contaminated land), and
(d)any amount set off against the loss under section 400 of ICTA (write-off of government investment).
(3)For this purpose, no account is to be taken of any losses brought forward from an earlier chargeable period under section 392A(2) of ICTA.
13(1)This paragraph applies where the qualifying activity is an overseas property business and paragraph 14 does not apply.U.K.
(2)The amount of the loss that is unrelieved is the amount of the loss, reduced by any amount set off against the loss under section 400 of ICTA (write-off of government investment).
(3)For this purpose, no account is to be taken of any losses brought forward from an earlier chargeable period under section 392B(1) of ICTA.
14(1)This paragraph applies where—U.K.
(a)the qualifying activity is a Schedule A business or an overseas property business, and
(b)the company is an insurance company.
(2)If no amount falls to be carried forward to a succeeding chargeable period under section 76(12) of ICTA (carrying forward unrelieved expenses), no amount of the loss is unrelieved.
(3)If an amount falls to be carried forward to a succeeding chargeable period under section 76(12) of that Act, the amount of the loss that is unrelieved is equal to the lesser of—
(a)the amount of the loss (see paragraph 7), reduced by any amount within sub-paragraph (4), and
(b)the total amount which so falls to be carried forward.
(4)The amounts mentioned in sub-paragraph (3)(a) are—
(a)the amount of any loss surrendered under Part 3 of Schedule 22 to FA 2001 (tax credits for remediation of contaminated land), and
(b)any amount set of against the loss under section 400 of ICTA (write-off of government investment).
(5)Sub-paragraph (6) applies for determining whether there is an amount which falls to be carried forward under section 76(12) of ICTA.
(6)Disregard any amounts brought forward from an earlier chargeable period and treated for the purposes of section 76 of that Act as expenses payable which fall to be brought into account—
(a)in accordance with Step 7 in subsection (7) of that section, by virtue of a previous application of subsection (12) or (13) of that section, or
(b)in accordance with Step 3 in subsection (7) of that section, by virtue of paragraph 4(4) of Schedule 11 to FA 1996 (loan relationships deficit carried forward and so brought into account).
15(1)This paragraph applies where the qualifying activity is managing the investments of a company with investment business.U.K.
(2)The amount of the loss that is unrelieved is the amount of the loss (see paragraph 8), reduced by the amount of—
(a)any loss that was or could have been surrendered under section 403(1) of ICTA (surrender of relief to group or consortium members), and
(b)any amount set off against the loss under section 400 of that Act (write-off of government investment).
(3)For this purpose, no account is to be taken of any amount brought forward from an earlier chargeable period under section 75(9) of that Act.
16(1)This paragraph applies where the qualifying activity is life assurance business and the profits of that business are charged to tax under the I minus E basis.U.K.
(2)The amount of the unrelieved loss is the amount of the loss (see paragraph 9), reduced by—
(a)any loss surrendered under Part 4 of Schedule 22 to FA 2001 (tax credits for remediation of contaminated land), and
(b)any amount set off against the loss under section 400 of ICTA (write-off of government investment).
(3)For this purpose, no account is to be taken of any amounts brought forward from an earlier chargeable period and treated for the purposes of section 76 of ICTA as expenses payable which fall to be brought into account for the period in question—
(a)in accordance with Step 7 in subsection (7) of that section, by virtue of a previous application of subsection (12) or (13) of that section, or
(b)in accordance with Step 3 in subsection (7) of that section, by virtue of paragraph 4(4) of Schedule 11 to FA 1996 (loan relationships deficit carried forward and so brought into account).]