Corporation Tax Act 2010 section 357RH

Terminal losses

Section 357RH explains how the terminal loss rules in section 1211 of CTA 2009 apply when the terminal loss in question is a Northern Ireland loss, ensuring that such losses retain their Northern Ireland character when carried forward or transferred.

• When a company elects to treat all or part of a terminal loss as a loss brought forward from another trade, and that terminal loss is a Northern Ireland loss, it is treated as a Northern Ireland loss brought forward.
• When a company claims to treat all or part of a terminal loss as a loss brought forward by a different company, and that terminal loss is a Northern Ireland loss, it is likewise treated as a Northern Ireland loss brought forward.
• This preserves the Northern Ireland designation of terminal losses so that they continue to benefit from the Northern Ireland corporation tax rules when utilised against future profits or transferred between companies.
• The section modifies the existing terminal loss provisions in CTA 2009 by reading references to losses brought forward as references to Northern Ireland losses brought forward, wherever the underlying loss qualifies as a Northern Ireland loss.