Corporation Tax Act 2009 section 1158

Restriction on losses carried forward where tax credit claimed

Section 1158 prevents a company from both claiming a land remediation tax credit and carrying forward the same loss for relief against future profits.

• Where a company claims a land remediation tax credit, its UK property business loss for that period is reduced by the amount of loss surrendered for the credit
• Similarly, any trading loss for the period is reduced by the surrendered loss amount, preventing double relief against future trade profits
• For life insurance companies whose UK property business loss is treated as a deemed BLAGAB management expense, the amount carried forward as unrelieved expenses is instead reduced by the surrendered loss
• The "surrendered loss" is defined as the qualifying land remediation loss in respect of which the tax credit is claimed for the accounting period