Section 1055 Meaning of “Chapter 2 surrenderable loss”C1

United Kingdom

(1)

For the purposes of this Chapter a company has a “Chapter 2 surrenderable loss” if in an accounting period—

(a)

it obtains an additional deduction under section 1044 in calculating the profits of a trade and it makes a trading loss in that period in the trade, or

(b)

it is treated as making a trading loss under section 1045.

(2)

If relief is obtained under section 1044 the amount of the Chapter 2 surrenderable loss is—

(a)

so much of the trading loss as is unrelieved, or

(b)

if less, F1186% of the qualifying Chapter 2 expenditure in respect of which the relief was obtained.

(3)

If relief is obtained under section 1045 the amount of the Chapter 2 surrenderable loss is so much of the trading loss as is unrelieved.

Annotations

Textual amendments

F1: Word in s. 1055(2)(b) substituted (in relation to expenditure incurred on or after 1.4.2023) by Finance Act 2023 (c. 1), s. 4(3)(c)(4)

Modifications

C1: S. 1055 excluded by 2010 c. 4, s. 357PC (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)

Notes on Part 13

Textual amendments

F1: Words in Pt. 13 heading omitted (with effect in relation to accounting periods beginning on or after 1.4.2024) by virtue of Finance Act 2024 (c. 3), Sch. 1 paras. 3, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2

Notes on Chapter 2

Textual amendments

F1: Pt. 13 Ch. 2 heading substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(2), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2