Corporation Tax Act 2010 section 694

Meaning of "the relevant provisions"

Section 694 defines the term "the relevant provisions" as used throughout the chapter dealing with restrictions on the use of certain losses and other amounts following a change in company ownership.

• The term covers the rules in TCGA 1992 section 8(1) and Schedule 7A, which determine how chargeable gains are included in a company's total profits after deducting allowable losses, and which restrict the use of pre-entry losses acquired through group membership.
• The term also covers Chapter 6 of Part 8 of CTA 2009, which sets out how credits and debits relating to intangible fixed assets are given effect for corporation tax purposes.
• The definition ensures that the anti-avoidance rules in Schedule 7A to TCGA 1992, which target the purchasing of allowable capital losses, are applied before the loss-buying rules in this chapter take effect.
• The concept of "the relevant provisions" is used in particular within the calculation rules set out in section 702(2) of the Act, which determines how profits and gains are computed for the purposes of this chapter.