Corporation Tax Act 2009 section 1218ZCI

Amount of surrenderable loss

Section 1218ZCI defines how to calculate the amount of loss that a company carrying on a separate exhibition trade can surrender in exchange for a museums and galleries exhibition tax credit.

• The surrenderable loss for an accounting period is the lower of the company's available loss in its separate exhibition trade and its available qualifying expenditure for that period.
• The available loss is the sum of the current period's trade loss and any relevant unused loss from the previous period — that is, any prior available loss that has not already been surrendered for tax credit or carried forward and set against profits of the separate exhibition trade.
• The available qualifying expenditure equals the cumulative qualifying expenditure for the first period, and for later periods equals the cumulative qualifying expenditure minus any amounts previously surrendered for tax credit.
• Where the period of account of the separate exhibition trade does not coincide with the company's accounting period, amounts must be apportioned on a time basis according to the number of days in the respective periods.