Section 303B — Corporation Tax Act 2010: Carry forward of losses against subsequent profits

Carry forward of losses against subsequent profits 303B 1 This section applies if—

a in an accounting period beginning on or after 1 April 2017 (“the loss-making period”) a company makes a non-decommissioning loss in a ring fence trade, b relief under— section 37 or 42, or Part 5 (group relief), is not given for an amount of the loss (“the unrelieved amount”),

and c the company continues to carry on the ring fence trade in the next accounting period (“the later period”).

2 The unrelieved amount is carried forward to the later period.

3 Relief for the unrelieved amount is given to the company in the later period if the company makes a profit in the trade for the later period.

4 The relief is given by reducing the profits of the trade in the later period by the unrelieved amount.

5 Relief under this section is subject to restriction or modification in accordance with the provisions of the Corporation Tax Acts.