Taxes Consolidation Act, 1997 (Number 39 of 1997)
[1]>
420A Group relief: relevant losses and charges.
(1) In this section—
“relevant trading charges on income” and “relevant trading income” have the same meanings, respectively, as in section 243A;
[2]>
“relevant trading loss” has the same meaning as in section 396A.
<[2]
[2]>
“relevant trading loss”, in relation to an accounting period of a company, means a loss incurred in the accounting period in a trade carried on by the company, other than—
(a) so much of the loss as is a loss incurred in an excepted trade within the meaning of section 21A, and
(b) any amount which is or would, if subsection (8) of section 403 had not been enacted, be the relevant amount of the loss for the purposes of subsection (4) of that section.
<[2]
(2) Notwithstanding subsections (1) and (6) of section 420 and section 421, where in any accounting period the surrendering company incurs a relevant trading loss or an excess of relevant trading charges on income, that loss or excess may not be set off for the purposes of corporation tax against the total profits of the claimant company for its corresponding accounting period.
(3) (a) [6]>Subject to section 456, where<[6][6]>Where<[6] 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) income specified in [7]>section 21A(4)(b)<[7][7]>section 21A(4)<[7], [4]>and<[4]
(ii) relevant trading [3]>income,<[3][3]>income, and<[3]
[5]>
(iii) income to which section 21A(3) does not apply by virtue of section 21B,
<[5]
of the claimant company for its corresponding accounting period as reduced by any amounts allowed as deductions against that income under section 243A or set off against that income under section 396A.
(b) Paragraph (a) shall not apply—
(i) to so much of a loss as is excluded from section 396(2) by section 396(4) or 663, or
(ii) so as to reduce the profits of a claimant company which carries on life business (within the meaning of section 706) by an amount greater than the amount of such profits (before a set off under this subsection) computed in accordance with Case 1 of Schedule D and section 710(1).
(4) Group relief allowed under subsection (3) shall reduce the income from a trade of the claimant company for an accounting period—
(a) before relief granted under section 397 in respect of a loss incurred in a succeeding accounting period or periods, and
(b) after the relief granted under section 396 in respect of a loss incurred in a preceding accounting period or periods.
(5) For the purposes of this section in the case of a claim made by a company as a member of a consortium, only a fraction of a relevant trading loss or an excess of relevant trading charges on income may be set off, and that fraction shall be equal to that member’s share in the consortium, subject to any further reduction under section 422(2).
<[1]
[1]
Inserted by FA01 s90(1)(b)(ii). Applies as respects an accounting period ending on or after 6 March 2001.
[2]
Substituted by FA05 s45(1)(d). Applies as respects any claim made by a company on or after 3 February 2005 for relief for a loss.
[3]
Substituted by FA08 s43(1)(e)(i). This section shall be deemed to have applied as respects a dividend received on or after 1 January 2007.
[4]
Deleted by FA08 s43(1)(e)(i). This section shall be deemed to have applied as respects a dividend received on or after 1 January 2007.
[5]
Inserted by FA08 s43(1)(e)(ii). This section shall be deemed to have applied as respects a dividend received on or after 1 January 2007.