Corporation Tax Act 2010 section 303D

Further carry forward against subsequent profits of loss not fully used

Section 303D deals with what happens when a ring fence trade loss that has been carried forward to a later accounting period is not fully used up in that period, ensuring the unused portion continues to be carried forward to subsequent periods.

• Where a ring fence trade loss carried forward under section 303B (or under this section itself) is not fully relieved in the period it was carried to, the unrelieved balance automatically carries forward again to the next accounting period, provided the company continues to carry on the ring fence trade.
• A carried-forward loss is treated as "unrelieved" to the extent it has not been deducted from ring fence trade profits, set against total profits under section 303C, or surrendered as group relief for carried-forward losses under Part 5A of CTA 2010.
• Relief in the next period is given by reducing the ring fence trade profits of that period by the remaining carried-forward amount, but only if the company has a profit in the trade for that period.
• Any relief under this section remains subject to restriction or modification in accordance with wider Corporation Tax Acts provisions.