Corporation Tax Act 2010 section 943A

Disapplication of section 39

Section 943A prevents the predecessor company in a trade transfer from using the extended terminal loss relief rules when claiming relief for losses made in the transferred trade.

• This section applies where a trade is transferred and Chapter 1 of Part 22 governs that transfer.
• The predecessor company cannot use the extended carry-back period normally available for terminal losses under section 39.
• The restriction applies specifically to claims for trade loss relief against total profits under section 37.
• The effect is that any loss relief claim by the predecessor must follow the standard time limits rather than the more generous terminal loss provisions.