Section 1158 — Corporation Tax Act 2009: Restriction on losses carried forward where tax credit claimed

Restriction on losses carried forward where tax credit claimed 1158 1 For the purposes of section 62 of CTA 2010 (relief for losses made in UK property business) a company's UK property business loss for an accounting period in which it claims a land remediation tax credit to which it is entitled is treated as reduced by the amount of the surrendered loss for the period.

2 For the purposes of sections 45, 45A and 45B of CTA 2010 (relief of trading losses against future ... profits) a company's trading loss for an accounting period in which it claims a land remediation tax credit to which it is entitled is treated as reduced by the amount of the surrendered loss for the period.

3 Subsection (4) applies (instead of subsection (1)) if in an accounting period—

a as a result of section 87(3) of FA 2012, a company's UK property business loss is treated for the purposes of section 76 of that Act as a deemed BLAGAB management expense for the accounting period, b an amount falls to be carried forward to a subsequent accounting period under section 73 of FA 2012 (unrelieved expenses carried forward),

and c the company claims a land remediation tax credit for the period.

4 The amount which falls to be carried forward to a subsequent accounting period under section 73 of FA 2012 is treated as reduced by the amount of the surrendered loss for the period.

5 References in this section to “the amount of the surrendered loss” for an accounting period are to the amount of any qualifying land remediation loss in respect of which a land remediation tax credit is claimed for the period.