Corporation Tax Act 2010 section 51

Companies treated as same person as individual

Section 51 explains how to calculate trade losses when a farming or market gardening trade has been transferred from an individual to a company and the two are treated as the same person under section 50(4).

• Where a company is treated as the same person as an individual under section 50(4), trade losses in an accounting period may be calculated by reference to the individual's profits and losses in earlier tax years.
• The individual's profits and losses from tax years may be allocated, in whole or in part, to the company's accounting periods on a just and reasonable basis.
• If a tax year or part of a tax year is not covered by any accounting period, that uncovered period can be treated as if it were an accounting period, and profits and losses may be allocated to it accordingly.
• Where the individual's profits or losses were not originally calculated by reference to tax years, the rules in section 70 of ITA 2007 apply so that profits and losses are apportioned on a time basis to arrive at figures for each relevant tax year.