Section 1179BF — Corporation Tax Act 2009: Carrying forward of production losses

Carrying forward of production losses 1179BF 1 This section applies if a company makes a loss in the separate production trade in a pre-completion period (see sections 1179DY and 1179FQ ).

2 The loss is not available for loss relief, except as provided in subsections (3) and (5) .

3 The loss is not prevented from being carried forward under section 45B of CTA 2010 to be deducted from profits of the separate production trade in a subsequent period.

4 If the loss is so carried forward and deducted, the deduction is to be ignored for the purposes of section 269ZB of CTA 2010.

5 To the extent that the loss could be carried forward under section 45B of CTA 2010 to the completion period or a subsequent accounting period, it may instead be treated for the purposes of section 37 and Part 5 of CTA 2010 as a loss made in that period.

6 Subsection (5) does not apply to the extent that the loss is carried forward by virtue of section 1179BG .

7 In this section, “ loss relief ” includes any means by which a loss might be used to reduce the amount in respect of which the company, or any other person, is chargeable to tax.