Section 1055 — Corporation Tax Act 2009: Meaning of “Chapter 2 surrenderable loss”

Meaning of “Chapter 2 surrenderable loss” 1055 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, 186% 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.