Section IS 3 — Income Tax Act 2007: Holding companies’ tax losses

IS 3 Holding companies’ tax losses When this section applies (1) This section applies in a tax year if— (a) a mining company has net income for the tax year after having subtracted an amount of any net mining loss that is carried forward; and (b) the company and a holding company, which is not a mining company, would be included in a wholly-owned group of companies in the absence of section IS 1(1) ; and (c) the holding company has a tax loss for the tax year that it cannot make available under section IC 5 (Company B using company A’s tax loss) to another company that is part of the wholly-owned group. Using tax losses (2) The mining company may subtract some or all of the amount of the holding company’s tax loss from its net income, so far as it extends, for the tax year. Determining amounts (3) The amount of the holding company’s tax loss is found without taking into account a deduction that the holding company may have under section DU 12 (Amount written off by holding company) for an amount written off a loan from the holding company to the mining company. Relationship with section IS 1 (4) This section overrides section IS 1(1) . Defined in this Act: amount , deduction , holding company , loan , mining company , net income , net mining loss , tax loss , tax year , wholly-owned group of companies Compare: 2004 No 35 s IH 4(3) Section IS 3(1)(a): amended (with effect on 1 April 2008), on 7 December 2009, by section 70(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section IS 3 list of defined terms loss balance : repealed (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section IS 3 list of defined terms net mining loss : inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).