Corporation Tax Act 2009 section 1216DB

Use of losses in later periods

Section 1216DB restricts how trading losses from a television programme trade can be used once the qualifying programme is completed or abandoned, ensuring that the portion of any loss attributable to television tax relief cannot be set sideways against other profits or surrendered as group relief.

• The section applies from the accounting period in which a qualifying programme is completed or abandoned, and to any subsequent periods if the trade continues.
• Trading losses carried forward from earlier (pre-completion) periods are treated as losses of the later period into which they are carried, but their use is restricted.
• Only the portion of a loss that is not attributable to television tax relief may be set against other profits of the same or an earlier period, or surrendered as group relief.
• These restrictions do not apply to terminal losses dealt with under section 1216DC.