Corporation Tax Act 2010 section 92

Loss relief to be reduced if government investment is written off

Section 92 deals with how a company's carry-forward losses are reduced when government investment in that company is written off.

• When government investment in a company is written off, the written-off amount must be set against the company's carry-forward losses
• The written-off amount is first set against carry-forward losses at the end of the last accounting period before the write-off date
• If the written-off amount exceeds those losses, the excess carries forward and is set against losses at the end of successive accounting periods until fully absorbed
• The provision does not apply to unincorporated associations, even though these can sometimes fall within the definition of a company for corporation tax purposes