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(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.

(a) if the successor does so within 4 years of succeeding to the trade, any relief which might be given to the successor under section 397 on the successor ceasing to carry on the trade may, in so far as that relief cannot be given to the successor, be given to the predecessor as if the predecessor had incurred the loss (including any amount treated as a loss under section 397(3)), and

(a) if the successor does so within 4 years of succeeding to the trade, any relief which might be given to the successor under section 397 on the successor ceasing to carry on the trade may, in so far as that relief cannot be given to the successor, be given to the predecessor as if the predecessor had incurred the loss (including any amount treated as a loss under section 397(3)), and

(b) if the successor ceases to carry on the trade within one year of succeeding to the trade, relief may be given to the predecessor under section 397 in respect of any loss incurred by the predesessor (or any amount treated as such a loss under section 397(3));

(b) if the successor ceases to carry on the trade within one year of succeeding to the trade, relief may be given to the predecessor under section 397 in respect of any loss incurred by the predesessor (or any amount treated as such a loss under section 397(3));

but, for the purposes of section 397 as it applies by virtue of this subsection to the giving of relief to the predecessor, the predecessor shall be treated as ceasing to carry on the trade when the successor does so.

(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—

(a) before relief granted under section 397 in respect of a loss incurred in a succeeding accounting period or periods, and

(b) Relief for a relevant foreign loss shall be given after relief for any losses (including relief for losses under section 397) which are not relevant foreign losses.

(c) relief under section 397 in respect of a loss incurred in an accounting period after the end of the accounting period the profits of which are being computed.

(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.

(13) Notwithstanding subsection (1) of section 397, where, on or before 31 December 2008, a company ceasing to carry on a trade, the operations or activities of which include dealing in residential development land, has incurred a loss in the trade, in any accounting period falling wholly or partly within the period of 12 months ending on the day the company ceased to carry on the trade, then, for the purposes of subsection (1) of that section, the amount of that loss shall be deemed to be reduced by the lesser of—

(14) Notwithstanding subsection (1) of section 397, where, on or after 1 January 2009, a company ceasing to carry on a trade, the operations or activities of which include dealing in residential development land, has incurred a loss in the trade, in any accounting period falling wholly or partly within the period of 12 months ending on the day the company ceased to carry on the trade, and falling wholly or partly before 1 January 2009, then, for the purposes of subsection (1) of that section, the amount of that loss shall be deemed to be reduced—

(15) Where a company ceasing to carry on a trade, the operations or activities of which include dealing in residential development land, makes a claim under section 397 in respect of a loss incurred in that trade and the loss is reduced under subsection (13) or (14) for an accounting period, then, subject to subsection (17) and to any relief for earlier losses, the company may claim relief under this subsection for that accounting period in respect of the amount by which the loss has been reduced.

(18) Where relief is claimed under section 397 in respect of an accounting period and the amount of loss, in respect of which relief is claimed, is reduced by virtue of subsection (2) subsection (13) or (14), then, for the purposes of granting relief under that section—

(19) Subsections (13) to (18) shall apply in any case where a claim for relief under section 397 is made on or after 7 April 2009 in respect of a loss in a trade, the operations or activities of which include dealing in residential development land.

(a) before relief granted under section 397 in respect of a loss incurred in a succeeding accounting period or periods, and

(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

(iii) a set-off of a loss under section 397 for any accounting period earlier than the relevant period in respect of a loss sustained in the trade.

(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

(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.