Section 45A — Corporation Tax Act 2010: Carry forward of post-1 April 2017 trade loss against total profits

Carry forward of post-1 April 2017 trade loss against total profits 45A 1 This section applies if—

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

c the company continues to carry on the trade in the next accounting period (“the later period”),

and d the conditions in subsection (3) are met.

2 But this section does not apply if the trade is a ring fence trade.

3 The conditions are that—

a the trade did not become small or negligible in the loss-making period, b relief under section 37 was not unavailable for the loss by reason of —

i section 37(5), 44, 48 or 52, or ii section 1179BF, 1209, 1216DA, 1217DA, 1217MA, 1217SA or 1218ZDA of CTA 2009, c relief under section 37 would not be unavailable by reason of section 44 for a loss (assuming there was one) made in the trade in the later period, d if the company is a Solvency 2 insurance company the loss is not a shock loss (see subsections (9) and (10)),

and e the later period is not an excluded accounting period of a general insurance company.

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

5 The company may make a claim for relief to be given in the later period for the unrelieved amount or for any part of it specified in the claim.

6 If the company makes a claim, the relief is given by deducting the unrelieved amount, or the specified part of it, from the company's total profits of the later period.

7 A claim under this section must be made—

a within the period of two years after the end of the later period, or b within such further period as an officer of Revenue and Customs may allow.

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

9 For the purposes of this section and section 45B, a loss which is partly, but not wholly, a shock loss is to be treated as if—

a the amount that is a shock loss, and b the amount that is not, were separate losses.

10 In this section— “ excluded accounting period ” has the meaning given by section 269ZG; “general insurance company” is to be interpreted in accordance with section 269ZG(6); “ ring fence trade ” has the same meaning as in Part 8 (see section 277); “ Solvency 2 insurance company ” means an insurance company as defined in section 269ZP(2); “ shock loss ” has the meaning given by section 269ZK.