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Section 45F Terminal losses: relief unrestricted by Part 7ZA and 7AF1

(1)

This section applies if—

(a)

a company makes a loss in a trade in an accounting period (the “loss-making period”),

(b)

an amount of that loss is carried forward to an accounting period of the company (“the terminal period”) under section 45, 45A or 45B,

(c)

relief in the terminal period is not given under section 45, 45A or (as the case may be) 45B for that amount or for any part of it, and

(d)

the company ceases to carry on the trade in the terminal period.

(2)

The company may make a claim for relief to be given for the unrelieved amount under this section.

(3)

If the company makes a claim the relief is given by deducting the unrelieved amount from the relevant profits of the company of—

(a)

the terminal period, and

(b)

previous accounting periods so far as they fall (wholly or partly) within the period of 3 years ending with the end of the terminal period.

(4)

But no deduction is to be made under subsection (3) for any accounting period which is—

(a)

the loss-making period,

(b)

a period before the loss-making period, or

(c)

a period beginning before 1 April 2017.

(5)

The amount of a deduction to be made under subsection (3) for any accounting period is the amount of the unrelieved amount so far as it cannot be deducted under that subsection for a subsequent accounting period.

(6)

The company's claim must be made—

(a)

within the period of two years after the end of the terminal period, or

(b)

within such further period as an officer of Revenue and Customs may allow.

(7)

In this section—

  • “the unrelieved amount” means so much of the amount mentioned in subsection (1)(b) for which relief is not given in the terminal period under section 45, 45A or (as the case may be) 45B, and

  • “relevant profits”, in relation to the terminal period or any previous accounting period, means—

    1. (a)

      the total profits of the company of the period, in a case where the unrelieved amount was carried forward to the terminal period under section 45A,

    2. (b)

      the profits of the trade of the period, in a case where the unrelieved amount was carried forward to the terminal period under section 45 or 45B.

(8)

Relief under this section is subject to restriction or modification in accordance with provisions of the Corporation Tax Acts.

Annotations

Textual amendments

F1

Ss. 45A-45H inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 11

Notes on Part 4

Modifications

C1

Pt. 4 modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Risk Transformation (Tax) Regulations 2017 (S.I. 2017/1271), regs. 1(1), 10

C2

Pt. 4 excluded (14.7.2022) by Energy (Oil and Gas) Profits Levy Act 2022 (c. 40), s. 1(5)(e) (with ss. 15(1), 16(1))