Corporation Tax Act 2010 Explanatory Notes

Section 49: Reasonable expectation of profit

201.This section sets out the “reasonable expectation of profit” test which, if met, enables relief to be given that would otherwise be restricted under section 48. It is based on section 397(3) and (5) of ICTA.

202.“Profit” in section 49 refers to profit in its ordinary commercial sense.

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