Capital Allowances Act 2001

[F1Unrelieved lossU.K.

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 [F2, a UK furnished holiday lettings business or an EEA 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 [F3section 37(3)(a) of CTA 2010 to deduct the loss from total profits] of the same chargeable period,

(b)any other relief obtained by the company making a claim under [F4section 37(3)(b) or 42 of that Act (losses deducted from] profits of an earlier chargeable period),

(c)any loss that was or could have been surrendered under [F5Part 5] 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 [F6Chapter 7 of Part 4] 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 [F7section 45 of CTA 2010],

(b)carried back from a later chargeable period under [F8section 37(3)(b) or 42] of that Act, or

(c)incurred on a leasing contract (within the meaning of [F9section 53] of that Act) in circumstances to which that section applies.

(4)In sub-paragraph (2)(d) “relevant tax credit provision” means—

[F10(a)Chapter 2 or 7 of Part 13 of CTA 2009 (tax credits for expenditure on research and development or vaccine research etc),

(b)Chapter 3 of Part 14 of that Act (tax credits for remediation of contaminated land), F11...

(c)Chapter 3 of Part 15 of that Act (film tax credits).]

[F12(d)Chapter 3 of Part 15A of that Act (television tax credits), F13...

(e)Chapter 3 of Part 15B of that Act (video game tax credits).] F14...

[F15(f)section 1217K of that Act (theatre tax credits)][F16, and

(g) Chapter 3 of Part 15D of that Act (orchestra tax credits).]

12(1)This paragraph applies where the qualifying activity is [F17an ordinary UK property business or an ordinary 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 the amount of—

(a)any relief that was or could have been obtained by the company making a claim under [F18section 62(1) to (3) of CTA 2010 to deduct the loss from total profits] of the same chargeable period,

(b)any loss that was or could have been surrendered under [F19Part 5] of that Act (surrender of relief to group or consortium members),

(c)any loss surrendered under [F20Chapter 3 of Part 14 of CTA 2009] (tax credits for remediation of contaminated land), and

(d)any amount set off against the loss under [F21Chapter 7 of Part 4 of CTA 2010] (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 [F22section 62(5) of CTA 2010].

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 [F23Chapter 7 of Part 4 of CTA 2010] (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 [F24section 66 of CTA 2010].

14(1)This paragraph applies where—U.K.

(a)the qualifying activity is a [F25UK property 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 [F26section 73 of FA 2012] (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 [F27section 73] 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 [F28Chapter 3 of Part 14 of CTA 2009] (tax credits for remediation of contaminated land), and

(b)any amount [F29set off against the loss under Chapter 7 of Part 4 of CTA 2010] (write-off of government investment).

(5)Sub-paragraph (6) applies for determining whether there is an amount which falls to be carried forward under [F30section 73 of FA 2012] .

[F31(6)Disregard any amounts brought forward from an earlier chargeable period which fall to be taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the period in question as a result of—

(a)the previous application of section 73 or 93 of FA 2012, or

(b)the carry forward to the period in question of an amount under section 391(3) of CTA 2009 (loan relationship deficit carried forward).]

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 [F32Part 5 of CTA 2010] (surrender of relief to group or consortium members), and

(b)any amount set off against the loss under [F33Chapter 7 of Part 4] 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 [F34section 1223 of CTA 2009].

16(1)This paragraph applies where the qualifying activity is [F35basic life assurance and general annuity business] and the profits of that business are charged to tax [F35in accordance with the I - E rules].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 [F36Chapter 4 of Part 14 of CTA 2009] (tax credits for remediation of contaminated land), and

(b)any amount set off against the loss under [F37Chapter 7 of Part 4 of CTA 2010] (write-off of government investment).

[F38(3)For this purpose, no account is to be taken of any amounts brought forward from an earlier chargeable period which fall to be taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the period in question as a result of—

(a)the previous application of section 73 or 93 of FA 2012, or

(b)the carry forward to the period in question of an amount under section 391(3) of CTA 2009 (loan relationship deficit carried forward).]]