Corporation Tax Act 2010 section 303C

Excess carried forward losses: relief against total profits

Section 303C allows a company carrying on a ring fence trade to claim relief against its total profits for carried-forward non-decommissioning losses that cannot be set against the ring fence trade profits of the later period.

• Where a non-decommissioning loss from a ring fence trade has been carried forward but cannot be fully relieved against the trade profits of the later accounting period, the remaining unrelieved amount may be claimed against the company's total profits of that later period.
• The claim is not available if the ring fence trade became small or negligible during the loss-making period or any intervening period, or if sideways relief under the general trade loss provisions would have been blocked because the trade was not conducted on a commercial basis.
• The company can choose to deduct all or part of the unrelieved amount from its total profits for the later period.
• The claim must be made within two years of the end of the later accounting period, unless HMRC allows a longer period.