Section 1179BG — Corporation Tax Act 2009: Transfer of terminal loss to other qualifying production

Transfer of terminal loss to other qualifying production 1179BG 1 This section applies if—

a a company (“the principal company”) ceases to carry on the separate production trade in respect of a production, b the principal company could, but for the cessation of that trade, carry an amount (“the terminal loss”) forward under section 45A or 45B of CTA 2010 to an accounting period after that in which the cessation occurs, c when the trade ceases, either the principal company or another company in the same group carries on another separate production trade under this Chapter (“the other trade”),

and d the ceased trade and the other trade both relate to productions that are or were qualifying productions by virtue of the same Chapter of this Part.

2 If the other trade is carried on by the principal company, the company may, by making a claim, treat the terminal loss (or part of it) as a loss made in the other trade that is carried forward under section 45B of CTA 2010.

3 If the other trade is carried on by another company—

a the principal company may surrender the terminal loss (or part of it) to the other company, and b the other company may, by making a claim, elect for the surrendered amount to be treated as a loss made in the other trade that is carried forward under section 45B of CTA 2010.

4 The carrying forward of a loss by virtue of subsection (2) or (3) is to the first accounting period beginning after the cessation of the ceased trade.

5 If—

a the other trade is no longer carried on that accounting period, b the company carrying on the other trade is not entitled to an expenditure credit under Chapter 3 for that accounting period in respect of the other trade, or c in a case within subsection (3) , the other company does not make the election in relation to that accounting period, the claim under subsection (2) or the surrender under subsection (3) is to be treated as not having been made.

6 The Treasury may, in relation to surrenders or elections under subsection (3) , make provision by regulations corresponding, subject to such adaptations or modifications as appear to them to be appropriate, to that made by Part 8 of Schedule 18 to the FA 1998.

7 A deduction made under section 45B of CTA 2010 by virtue of this section is to be ignored for the purposes of section 269ZB of CTA 2010.

8 The principal company is not entitled to relief under section 45F of CTA 2010 in respect of an amount surrendered under subsection (3) .