Section IZ 5 — Income Tax Act 2007: Companies’ tax losses for tax years before 1991–92 tax year

IZ 5 Companies’ tax losses for tax years before 1991–92 tax year Loss balances carried forward (1) A company’s loss balance for a tax year before the 1991–92 tax year may be used under section IA 4 (Using loss balances carried forward to tax year) if— (a) the company would have been entitled to have some or all of the tax loss under section 188 of the Income Tax Act 1976 carried forward to a later tax year, if that section had continued to apply in the later tax year, as modified by section 188AA of that Act and as if the continuity percentage referred to in section 188(7) of that Act were always 40%; and (b) for the period starting on the first day of the 1992–93 tax year and ending on the last day of the later tax year, a group of persons holds total minimum voting interests in the company that add up to at least 49%. Market value circumstances and minimum interests (2) For the purposes of subsection (1)(b),— (a) if, during the period a market value circumstance exists for the company, the group of persons must also hold for the period total minimum market value interests in the company that add up to at least 49%: (b) a minimum interest of any person in the company in the period is equal to the lowest interest that the person has in the period. Defined in this Act: company , group of persons , loss balance , market value circumstance , minimum market value interest , minimum voting interest , tax loss , tax year , Compare: 2004 No 35 s IF 1(6)