Corporation Tax Act 2009 section 1218ZDB

Use of losses in the completion period

Section 1218ZDB sets out how losses in the separate exhibition trade are treated during the completion period, and the extent to which they can be relieved against total profits or surrendered as group relief.

• Losses carried forward to the completion period that are not attributable to museums and galleries exhibition tax relief can be treated as if they were losses of the completion period, allowing them to be set against total profits or surrendered as group relief.
• Where a loss arises in the completion period itself, only the portion that is not attributable to museums and galleries exhibition tax relief may be deducted from total profits of the same or an earlier period, or surrendered as group relief.
• The portion of a loss attributable to the tax relief is calculated by working out what the loss would have been without any additional deduction for museums and galleries exhibition tax relief in that or any earlier period, and then deducting that hypothetical loss from the actual total loss.
• These rules do not apply to terminal losses, which are dealt with separately under section 1218ZDC.