Section 944D — Corporation Tax Act 2010: Modified application of section 303B

Modified application of section 303B 944D 1 Subsection (2) applies if—

a this Chapter applies to a transfer of a trade, b the transferred trade is a ring-fence trade, c the predecessor made a non-decommissioning loss in the transferred trade in the accounting period in which it ceased to carry it on, d that accounting period began on or after 1 April 2017, and e relief under section 37 or 42 or Part 5 is not given for an amount of the loss.

2 Subsections (2) to (5) of section 303B (carry forward of non-decommissioning losses against subsequent profits) have effect as if—

a references to the unrelieved amount were to the amount mentioned in subsection (1)(e),

b references to the later period were to the accounting period of the successor in which the successor begins to carry on the transferred trade, c references to the company were to the successor, and d references to the trade were to the transferred trade.

3 Section 303A (meaning of non-decommissioning loss) applies for the purposes of this section.

4 In this section “ ring fence trade ” has the same meaning as in Part 8 (see section 277).