Link Report

(a) a company referred to in subsection (3)(c)(i) of section 57 of the Trustee Savings Banks Act, 1989, which becomes a company referred to in subsection (3)(c)(ii) of that section shall not be entitled to relief under section 396(1) in respect of any loss incurred by the company in a trade in any accounting period or part of an accounting period in which it was a company referred to in subsection (3)(c)(i) of section 57 of the Trustee Savings Banks Act, 1989, and

(b) a company referred to in subsection (3)(c)(ii) of section 57 of that Act shall not be entitled to relief under section 396(1) in respect of any loss incurred by a company referred to in subsection (3)(c)(i) of section 57 of that Act.

(b) in the case of a company, sections 243, 308(4) and 396(2) and subsections (1), (2) and (6) of section 420.

(a) any claim in respect of the chargeable period under section 308(4), 396(2), 396A(3) or 399(2) shall be so restricted that the amount by which the company’s profits of that or any other chargeable period are to be reduced by virtue of the claim shall be 50 per cent of the amount it would have been if this section had not been enacted,

(B) amounts, which are not amounts referred to in clause (A), of any losses which could have been set off under section 396(2) against profits of the second-mentioned period but which were not set off against those profits,

(b) neither section 381 nor section 396(2) shall apply as respects the whole or part, as the case may be, of any loss which would not have arisen but for the making of that allowance.

(2) Notwithstanding subsection (2) of section 396, for the purposes of that subsection the amount of a loss in a trade incurred by a company in an accounting period shall be deemed to be reduced by the amount of a relevant trading loss incurred by the company in the accounting period.

“available losses”, in relation to an accounting period of a participating institution, means losses, carried forward from preceding accounting periods, for which relief is available under section 396(1) in that accounting period or succeeding accounting periods;

(ii) a group company in relation to that institution, having claimed all relief under section 396(1), if any, to which it would otherwise be entitled (including by reference to other claims made under this subsection), could obtain relief, or more relief, under section 396(1) for that accounting period if some or all of the excess available losses of the participating institution were deemed to have been incurred by the group company,

(ii) a group company in relation to that institution, having claimed all relief under section 396(1), if any, to which it would otherwise be entitled (including by reference to other claims made under this subsection), could obtain relief, or more relief, under section 396(1) for that accounting period if some or all of the excess available losses of the participating institution were deemed to have been incurred by the group company,

then, on the making of a claim in that regard by the group company, the participating institution may surrender to the group company an amount of those excess available losses that does not exceed the amount for which the group company could obtain relief for that accounting period, having claimed all other relief under section 396(1) to which it is entitled, and—

(I) that group company shall be deemed for the purposes of section 396(1) to have incurred those losses and shall set off the amount so surrendered against its trading income for the accounting period, which income shall be treated as reduced by that amount, and

(3) Subsections (5) to (8) of section 396 shall apply for the purposes of this section as they apply for the purposes of section 396(1), and relief shall not be given under this section in respect of a loss incurred in a trade so as to interfere with any relief under section 243 section 243 or 243A in respect of payments made wholly and exclusively for the purposes of that trade.

(3) Subsections (5) to (8) of section 396 shall apply for the purposes of this section as they apply for the purposes of section 396(1), and relief shall not be given under this section in respect of a loss incurred in a trade so as to interfere with any relief under section 243 section 243 or 243A in respect of payments made wholly and exclusively for the purposes of that trade.

(1) Notwithstanding subsection (5) of section 396 or subsection (3) of section 397, in ascertaining for the purposes of those sections whether and to what extent a company has incurred a loss in carrying on a trade in the State through a branch or agency, the interest on, and other profits or gains from, a security held by or for the branch or agency shall be treated as a trading receipt of the trade if such interest or other profits or gains would, if sections 43, 49 and 50 had not been enacted, have been so treated, or have been included in an amount so treated.

(7) The predecessor shall not be entitled to relief under section 397 except as provided by subsection (9) and, subject to any claim made by the predecessor under section 396(2), the successor shall be entitled to relief under section 396(1), as for a loss sustained by the successor in carrying on the trade, for any amount for which the predecessor would have been entitled to claim relief if the predecessor had continued to carry on the trade.

(7) The predecessor shall not be entitled to relief under section 397 except as provided by subsection (9) and, subject to any claim made by the predecessor under section 396(2), the successor shall be entitled to relief under section 396(1), as for a loss sustained by the successor in carrying on the trade, for any amount for which the predecessor would have been entitled to claim relief if the predecessor had continued to carry on the trade.

(i) under section 396 by setting a loss incurred by the company in an accounting period beginning before the change of ownership against any income or other profits of an accounting period ending after the change of ownership, or

(3) (a) Subject to paragraph (b), for the purposes of sections 396 and 397 sections 396, 396A and 397, the amount (which may be nil) of any set-off due to a company against income or profits of an accounting period in respect of a loss from a trade incurred by the company in an accounting period shall—

(i) for relief under section 396(2), except to the extent that it can be set off under that section against the company’s income from the trade of leasing only, or

“(i) for relief under section 396(2), except to the extent that it can be set off under that section against—

such that the aggregate of the amounts of the lease payments which are payable, or which would be payable if the relevant lease payments were the actual amounts payable under the lease, after any time exceeds the aggregate of the amounts of such relevant lease payments which would have been payable after that time if the events in subparagraph (i) or (ii) had not taken place, then, notwithstanding subsection (6)(a), unless it is shown that the change or the termination was effected for bona fide commercial reasons, the lease (including the terminated lease) shall be treated as if it were at all times a relevant lease, and relief given under Part 9, Chapter 1 or 2 of this Part, or section 396 or 420, which would not have been given if the lease was a relevant lease, shall be withdrawn.

(II) the amount of any loss which was set off under section 307, 308, 396 or 420 against profits, or

(b) neither section 381 nor section 396(2) shall apply as respects the whole or part (as the case may be) of any loss which would not have arisen but for the making of that allowance.

(b) This subsection shall not apply in relation to a claim by the company for the set-off under section 396(1)—

(i) against any profits under section 396(2), except to the extent of the amount of income from a qualifying shipping trade included in those profits, or

(1) Where in any accounting period the surrendering company has incurred a loss, computed as for the purposes of section 396(2), in carrying on a trade in respect of which the company is within the charge to corporation tax, the amount of the loss may be set off for the purposes of corporation tax against the total profits of the claimant company for its corresponding accounting period; but this subsection shall not apply—

(a) to so much of a loss as is excluded from section 396(2) by section 396(4) or 663, or

(a) to so much of a loss as is excluded from section 396(2) by section 396(4) or 663, or

(3) (a) Subject to section 456, where Where in any accounting period the surrendering company incurs a relevant trading loss, computed as for the purposes of section 396(2), or an excess of relevant trading charges on income in carrying on a trade in respect of which the company is within the charge to corporation tax, that loss or excess may be set off for the purposes of corporation tax against—

(i) to so much of a loss as is excluded from section 396(2) by section 396(4) or 663, or

(i) to so much of a loss as is excluded from section 396(2) by section 396(4) or 663, or

(b) after the relief granted under section 396 in respect of a loss incurred in a preceding accounting period or periods.

(2) Where in any accounting period the surrendering company has incurred a relevant trading loss, computed as for the purposes of section 396(2), or an excess of relevant trading charges on income, in carrying on a trade in respect of which the company is within the charge to corporation tax, and the amount of the loss or excess is greater than an amount equal to the aggregate of the amounts which could, if timely claims had been made for such set off, have been set off in respect of that loss or excess for the purposes of corporation tax against—

(b) relief under section 396(2) in respect of a loss incurred in an accounting period after the accounting period the profits of which are being computed, and

(3) That other relief shall be determined on the assumption that the company makes all relevant claims under section 308(4) or 396(2).

(b) apart from this subsection the first company would be entitled to claim relief under subsection (1) or (2) of section 396 in respect of losses incurred on the leasing contract, and

(3) (a) In this subsection, “trading income”, in relating to any trade, means the income from the trade computed in accordance with the rules applicable to Case I of Schedule D before any deduction under this Chapter and after any set-off or reduction of income by virtue of section 396 or 397, and after any deduction or addition by virtue of section 307 or 308, and after any deduction by virtue of section 666.

(2) Notwithstanding subsection (1) of section 396, where a company claims that a loss incurred in a trade, the operations or activities of which consist of or include dealing in residential development land, in an accounting period ending on or before 31 December 2008 be set off against trading income of an accounting period beginning after that date, the said subsection (1) shall apply as if the amount of the loss so far as it relates to dealing in residential development land were reduced by 20 per cent.

(3) Notwithstanding subsection (2) of section 396, for the purposes of that subsection the amount of a loss incurred by a company in an accounting period in a trade, the operations or activities of which consist of or include dealing in residential development land, shall be deemed to be reduced—

(12) Subsections (3) to (11) shall apply in respect of any claim to relief under section 396(2) in respect of a loss in a trade, the operations or activities of which consist of or include dealing in residential development land and the claim is made on or after 7 April 2009.

(i) to so much of a loss as is excluded from section 396(2) by section 396(4) or 663, or

(i) to so much of a loss as is excluded from section 396(2) by section 396(4) or 663, or

(b) after the relief granted under section 396 in respect of a loss incurred in a preceding accounting period or periods.

(2)(a) Any loss incurred in a trade of farming or market gardening shall not be available for relief under section 396(2) unless it is shown that, for the accounting period in which the loss is claimed to have been incurred, the trade was being carried on on a commercial basis and with a view to the realisation of profits in the trade.

(ii) Without prejudice to paragraph (a), any loss incurred in any accounting period in a trade of farming or market gardening shall not be available for relief under section 396(2) if a loss computed without regard to capital allowances was incurred in carrying on that trade in that accounting period and in each of the accounting periods wholly or partly comprised in the prior 3 years.

(a) the amount of the deduction under this section in an accounting period shall not exceed the amount of the company’s trading income for that period after all reductions of income for that period by virtue of sections 396 and 397 and after all deductions and additions for that period by virtue of sections 307 and 308 and before any deduction allowed by virtue of this section, and

(ii) a set-off of a loss under section 396 for any accounting period later than the relevant period in respect of a loss sustained in the trade before the commencement of the relevant period, or

(a) shall be entitled to relief in respect of the loss under section 157, subsections (1) to (3) of section 396 and subsections (1) and (2) of section 397 as if for “trading income from the trade” or “trading income”, wherever occurring in sections 396 and 397, there were substituted “profits (of whatever description)”, and

(a) shall be entitled to relief in respect of the loss under section 157, subsections (1) to (3) of section 396 and subsections (1) and (2) of section 397 as if for “trading income from the trade” or “trading income”, wherever occurring in sections 396 and 397, there were substituted “profits (of whatever description)”, and

(ii) relief, other than by virtue of subsection (3), under section 396(1) for any losses arising before the relevant time, in so far as relief has not already been given for those losses by virtue of this section.

(1) Notwithstanding sections 381 and 396(2)—

(ii) under section 396(2) against any profits other than petroleum profits,

(ii) under section 396(2) against petroleum profits.

(a) under section 396(7) in respect of a payment to which subsection (3)(a)(i) applies, or

(c) As respects so much of a loss in a petroleum trade incurred by a person in a chargeable period as is an abandonment loss, subsections (2) and (3) of section 396 shall apply as if the time specified in subsection (3) of that section were a period of 3 years ending immediately before the chargeable period in which the loss is incurred.

(iv) sections 709(2), 710 and 714 shall, and section 396(5)(b) shall not, apply for the purposes of computing the profits of the life assurance business or the industrial assurance business, as the case may be, which would have been charged to tax under Case I of Schedule D.

(2) In ascertaining for the purposes of section 396 or 397 whether and to what extent a company has incurred a loss on its life business, any profits derived from the investments of its life assurance fund (including franked investment income of a company resident in the State) shall be treated as part of the profits of that business.

(b) where the person is a company, under section 396 or 399.

(b) where the person is a company, under section 396 section 396, 396B or 399.

(b) for the purposes of corporation tax, the income or profits against which the loss may be set off under section 157 or 396, there shall be disregarded the appropriate amount in respect of the interest determined in accordance with Schedule 21.

(b) for the purposes of corporation tax, the income or profits against which the loss may be set off under section 157 or 396, there shall be disregarded the gross amount corresponding to so much of that net amount as would have been required to be taken into account as a trading receipt which has not borne tax.

(3) The amount of any expenditure to be treated under subsection (2) as incurred at the time that a trade or profession has been set up and commenced shall not be so treated for the purposes of section 381, 396(2) or 420.

(2)Section 396 shall not apply to a loss incurred by the Board in an accounting period ending before the 1st day of March, 1997.

(10) (a) Notwithstanding subsection (9)(a), where, in any accounting period, a qualified company incurred a loss (in this subsection referred to as a “relevant loss”) on qualified foreign trading activities and that loss formed, or formed part of, the profits or gains or losses of the company which were disregarded for the purposes of the Corporation Tax Acts by virtue of subsection (6), then the company may claim relief under section 396(1) in accordance with this subsection in respect of that loss for accounting periods beginning on or after 1 January 2011.

(c) Where a qualified company makes a claim under paragraph (a) in respect of a relevant loss then, subject to paragraph (b), the company shall be entitled to such relief under section 396(1) for accounting periods beginning on or after 1 January 2011 as it would have been entitled to had the profits or gains or losses from qualified foreign trading activities carried on through the branch or agency not been disregarded for the purposes of the Corporation Tax Acts by virtue of subsection (6) and had relief been granted in respect of the relevant loss under section 396(1), but not any other provision of the Corporation Tax Acts, for accounting periods ending before that date.

(c) Where a qualified company makes a claim under paragraph (a) in respect of a relevant loss then, subject to paragraph (b), the company shall be entitled to such relief under section 396(1) for accounting periods beginning on or after 1 January 2011 as it would have been entitled to had the profits or gains or losses from qualified foreign trading activities carried on through the branch or agency not been disregarded for the purposes of the Corporation Tax Acts by virtue of subsection (6) and had relief been granted in respect of the relevant loss under section 396(1), but not any other provision of the Corporation Tax Acts, for accounting periods ending before that date.