Section IC 8 — Income Tax Act 2007: Limitations on amounts used

IC 8 Limitations on amounts used Limit on amounts (1) A tax loss made available, or a payment made, under section IC 5(2) must be no more than the amount that would be company B’s net income for the tax year in which it subtracts the amount of the tax loss. Limit for payments (2) An amount that company B agrees to pay company A under section IC 5(2)(b) must be no more than the amount of company A’s tax loss. No accounting for amount by companies (3) Company A and company B must ignore this section in calculating their net incomes, but for the purposes of grouping tax losses, company B’s net income is found after taking into account— (a) first, its own losses; and (b) secondly, a tax loss made available to company B by another company. Defined in this Act: amount , company , loss , net income , pay , tax loss , tax year , Compare: 2004 No 35 s IG 2(2)(f), (g)