Law

Corporation Tax Act 2009

United Kingdom · statute

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In force since 2026-04-01, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 1,891 provisions

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1,891 provisions

1156 Tax credit payment not income of company

A payment in respect of a land remediation tax credit is not income of the company for any tax purposes.

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1157 Exclusion for capital gains purposes of certain expenditure

(1) This section applies if in an accounting period a payment is made to a company in respect of a land remediation tax credit. (2) The qualifying land remediation expenditure in respect of which the payment is made is to be treated as if it were excluded by section 39 of TCGA 1992 from the sums allowable under section 38 of that Act.

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1158 Restriction on losses carried forward where tax credit claimed

(1) For the purposes of section 62 of CTA 2010 (relief for losses made in UK property business) a company's UK property business loss for an accounting period in which it claims a land remediation tax credit to which it is entitled is treated as reduced by the amount of the surrendered loss for the period. (2) For the purposes of sections 45, 45A and 45B of CTA 2010 (relief of trading losses against future ... profits) a company's trading loss for an accounting period in which it claims a land remediation tax credit to which it is entitled is treated as reduced by the amount of the surrendered loss for the period. (3) Subsection (4) applies (instead of subsection (1)) if in an accounting period— (a) as a result of section 87(3) of FA 2012, a company's UK property business loss is treated for the purposes of section 76 of that Act as a deemed BLAGAB management expense for the accounting period, (b) an amount falls to be carried forward to a subsequent accounting period under section 73 of FA 2012 (unrelieved expenses carried forward), and (c) the company claims a land remediation tax credit for the period. (4) The amount which falls to be carried forward to a subsequent accounting period under section 73 of FA 2012 is treated as reduced by the amount of the surrendered loss for the period. (5) References in this section to “the amount of the surrendered loss” for an accounting period are to the amount of any qualifying land remediation loss in respect of which a land remediation tax credit is claimed for the period.

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1159 Limitation on relief under Chapter 2

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1160 Provision in respect of I minus E basis

This Chapter applies if, for an accounting period, an insurance company is charged to tax in respect of its basic life assurance and general annuity business in accordance with the I - E rules.

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1161 Relief in respect of I minus E basis: ... expenses payable

(1) A company is entitled to relief for an accounting period if conditions A, B and C are met. (2) Condition A is that a major interest in land in the United Kingdom is a management asset of the company. (3) Condition B is that— (a) in the case of land in a contaminated state, the land was in a contaminated state at the time of the acquisition by the company of a major interest in the land, and (b) in the case of land in a derelict state, the land was in a derelict state throughout the period beginning with the earlier of— (i) 1 April 1998, and (ii) the date on which a major interest in the land was first acquired by the company or a person who was connected with the company. (3A) The Treasury may by order— (a) specify circumstances in which the condition in paragraph (a) of subsection (3) need not be met, or (b) replace the date for the time being specified in paragraph (b)(i) of that subsection with a later date. (3B) An order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings. (4) Condition C is that the company incurs qualifying land remediation expenditure in the accounting period in respect of the land .... (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) The relief is that the company may treat ... the qualifying Chapter 4 expenditure as expenses payable which fall to be brought into account for the accounting period at Step 1 in section 76 of FA 2012 (deduction for expenses payable). (7) For the purposes of this section land is a management asset of a company if it is— (a) an asset provided for use or used for the management of basic life assurance and general annuity business carried on by the company, or (b) an asset in respect of which expenditure is being incurred with a view to such use by the company.

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1162 Additional relief

(1) If a company is entitled to relief under section 1161 for an accounting period it is also entitled to relief under this section for the period. (2) For the company to obtain the relief it must make a claim. (3) The relief is that the company may treat 50% of the qualifying Chapter 4 expenditure for the purposes of section 76 of FA 2012 as deemed BLAGAB management expenses for the accounting period. (4) For the purposes of this Chapter “the qualifying Chapter 4 expenditure” means— (a) the company's qualifying land remediation expenditure for the accounting period, less (b) the amount (if any) of the expenditure which, for the purposes of section 76 of FA 2012, is not an ordinary BLAGAB management expense of the company referable to the accounting period as a result of the application of section 77(2)(b) of that Act.

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1163 No relief if company responsible for contamination or dereliction or polluter has interest

(1) A company is not entitled to relief under section 1161 or 1162 in respect of expenditure on land all or part of which is in a contaminated or derelict state if the land is in a contaminated or derelict state wholly or partly as a result of any thing done, or omitted to be done, at any time by— (a) the company, or (b) a person with a relevant connection to the company (see section 1178). (2) A company is not entitled to relief under this Chapter in respect of expenditure on land all or part of which is in a contaminated or derelict state if— (a) the land is in that state wholly or partly as a result of any thing done, or omitted to be done, by a person not within subsection (1), and (b) that person, or a person connected with that person, has a relevant interest in the land. (3) For the purposes of subsection (2) a person has a relevant interest in land if— (a) the person holds any interest in, right over or licence to occupy the land (including an option to acquire any such interest, right or licence in any circumstances), or (b) has disposed of any estate or interest in the land for a consideration that to any extent reflects the impact, or likely impact, on the value of the land of the remediation of its contamination or dereliction.

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1164 Entitlement to tax credit

(1) A company is entitled to a BLAGAB tax credit for an accounting period if it has a qualifying BLAGAB loss in the period (see section 1165). (2) For the company to obtain a BLAGAB tax credit in respect of all or part of the qualifying BLAGAB loss it must make a claim. (3) The amount of a BLAGAB tax credit to which the company is entitled is determined in accordance with section 1166. (4) See also section 1168, which restricts the carry forward of expenses payable where a company claims a BLAGAB tax credit.

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1165 Meaning of “qualifying BLAGAB loss”

(1) For the purposes of this Chapter a company has a “qualifying BLAGAB loss” in an accounting period (“the relevant accounting period”) if in the period— (a) it is entitled to relief under section 1161 or 1162, and (b) an amount falls to be carried forward to a subsequent accounting period under section 73 of FA 2012 as excess BLAGAB expenses. (2) In determining for the purposes of subsection (1)(b) whether there is an amount which falls to be carried forward to a subsequent accounting period under section 73 of FA 2012 as excess BLAGAB expenses, no account is to be taken of the amounts specified in subsection (3). (3) Those amounts are amounts— (a) brought forward from an earlier accounting period, and (b) taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the relevant accounting period as a result of— (i) the previous application of section 73 or 93 of FA 2012, or (ii) the carry forward to the relevant accounting period of an amount under section 391 of this Act (surplus deficit). (4) The amount of the qualifying BLAGAB loss is— (a) the amount which falls to be carried forward as mentioned in subsection (1)(b), or (b) if less, 150% of the qualifying Chapter 4 expenditure in respect of which the relief was obtained.

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1166 Amount of tax credit

(1) The amount of the BLAGAB tax credit to which a company is entitled for an accounting period is 16% of the amount of the qualifying BLAGAB loss for the period. (2) The Treasury may by order replace the percentage for the time being specified in subsection (1) with a different percentage. (3) An order under subsection (2) may contain incidental, supplemental, consequential and transitional provision and savings.

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1167 Payment of tax credit etc

(1) The provisions mentioned in subsection (2) have effect in relation to a BLAGAB tax credit subject to the modifications set out in subsection (3). (2) The provisions referred to in subsection (1) are— section 1151(4) (payment of tax credit by officer of Revenue and Customs); section 1155 (supplementary provision about payment of tax credit); section 1156 (tax credit payment not income of company); section 1157 (qualifying expenditure excluded for capital gains purposes). (3) The modifications referred to in subsection (1) are as follows— (a) for any reference to a land remediation tax credit substitute a reference to a BLAGAB tax credit, and (b) in section 1157(2) for the reference to qualifying land remediation expenditure substitute a reference to qualifying Chapter 4 expenditure.

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1168 Restriction on carrying forward expenses payable where tax credit claimed

(1) This section applies if a company claims a BLAGAB tax credit to which it is entitled for an accounting period. (2) For the purposes of section 73 of FA 2012 the amount which may be— (a) carried forward from the accounting period under that section as excess BLAGAB expenses, and (b) brought into account in accordance with step 5 in section 76 of FA 2012, is treated as reduced by the amount of the surrendered loss for the period. (3) The “amount of the surrendered loss” for the period means the amount of the qualifying BLAGAB loss in respect of which the land remediation tax credit is claimed for the period.

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1169 Artificially inflated claims for relief or tax credit

(1) To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it is to be disregarded for the purposes mentioned in subsection (2). (2) Those purposes are determining for an accounting period the amount of— (a) any relief to which a company is entitled under Chapter 2, (b) any land remediation tax credits to which a company is entitled under section 1151, (c) any relief to which a company carrying on basic life assurance and general annuity business is entitled under section 1161 or 1162, and (d) any BLAGAB tax credits to which such a company is entitled under section 1164. (3) Arrangements are entered into wholly or mainly for a “disqualifying purpose” if their main object, or one of their main objects, is to enable a company to obtain— (a) relief under Chapter 2 to which the company would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled, (b) a land remediation tax credit to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled, (c) relief under section 1161 or 1162 to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled, or (d) a life assurance company tax credit to which it would not otherwise be entitled or of a greater amount than that to which it would otherwise be entitled. (4) In this section “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.

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1170 “Staffing costs”

(1) For the purposes of this Part the staffing costs of a company are amounts to which any of subsections (2) to (5) applies. (2) This subsection applies to an amount paid by the company to a director or an employee of the company which— (a) is earnings consisting of money, and (b) is paid because of the director's or employee's employment. (3) This subsection applies to an amount paid by the company to a director or an employee of the company, other than an amount paid in respect of benefits in kind, if— (a) the amount is paid in respect of expenses paid by the director or employee, and (b) the amount is paid because of the director's or employee's employment. (4) This subsection applies to secondary Class 1 national insurance contributions paid by the company. (5) This subsection applies to contributions paid by the company to a pension fund operated for the benefit of directors or employees of the company. (6) In subsection (5) “pension fund” means a scheme, fund or other arrangement established and maintained (whether in the United Kingdom or elsewhere) for the purpose of providing pension benefits. For this purpose “scheme” includes a deed, agreement or series of agreements. (7) In subsection (6) “pension benefits” means pensions, retirement annuities, allowances, lump sums, gratuities or other superannuation benefits (with or without subsidiary benefits).

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1171 Staffing costs attributable to relevant land remediation

(1) This section applies for the purposes of this Part to identify the staffing costs of a company which are attributable to relevant land remediation. (2) The costs which are so attributable are those paid to, or in respect of, directors or employees who are directly and actively engaged in relevant land remediation. (3) Subsection (4) applies if a director (“D”) or employee (“E”) is partly engaged directly and actively in relevant land remediation. (4) In that case— (a) if the time D or E spends so engaged is less than 20% of D's or E's total working time, none of the staffing costs relating to D or E is treated as attributable to relevant land remediation, (b) if the time D or E spends so engaged is more than 80% of D's or E's total working time, the whole of the staffing costs relating to D or E is treated as attributable to relevant land remediation, and (c) in any other case, the appropriate proportion of the staffing costs relating to D or E is treated as attributable to relevant land remediation. (5) Subsection (6) applies if persons provide services (such as secretarial or administrative services) in support of activities carried on by others. (6) Those persons are not, as a result of providing those services, to be treated as themselves directly and actively engaged in those activities.

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1172 Expenditure on materials

For the purposes of this Part expenditure on materials is attributable to relevant land remediation if the materials are employed directly in the relevant land remediation.

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1173 Expenditure incurred because of contamination or dereliction

(1) This section applies to identify cases in which the condition in section 1144(3) is to be treated as met (expenditure incurred because land in contaminated or derelict state). (2) If the only reason that expenditure on the land is increased is that the land is in a contaminated or derelict state, the amount by which the expenditure is increased is to be treated as expenditure meeting the condition in section 1144(3). (3) Subsection (4) applies— (a) in the case of land in a contaminated state, if the main purpose of any activities is any of those specified in section 1146(3), or (b) in the case of land in a derelict state, if the main purpose of any activities is any of those specified in section 1146A(3). (4) Expenditure on such works, operations or steps is to be treated as meeting the condition in section 1144(3). (5) This section does not affect the width of the provision made by section 1144(3).

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1174 Sub-contractor payments

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1175 Connected sub-contractors

(1) This section applies if— (a) a company makes a sub-contractor payment, (b) the company and the sub-contractor are connected, and (c) in accordance with generally accepted accounting practice, the whole of the sub-contractor payment and all of the sub-contractor's relevant expenditure have been brought into account in determining the sub-contractor's profit or loss for a relevant period. (1A) In this section, a “sub-contractor payment” means a payment made by the company to the sub-contractor in respect of relevant land remediation contracted out by the company to the sub-contractor. (2) The amount of the sub-contractor payment which is “qualifying expenditure on connected sub-contracted land remediation” for the purposes of section 1144(5) is— (a) the entire payment, or (b) if less, an amount equal to the sub-contractor's relevant expenditure. (3) “Relevant expenditure” of the sub-contractor means expenditure that— (a) is incurred by the sub-contractor in carrying on or arranging for carrying on, on behalf of the company, the activities to which the sub-contractor payment relates, (b) is not of a capital nature, (c) is in respect of staffing costs or materials, and (d) is not subsidised. (4) “Relevant period” means a period— (a) for which accounts are drawn up for the sub-contractor, and (b) that ends not more than 12 months after the end of the company's period of account in which the sub-contractor payment is, in accordance with generally accepted accounting practice, brought into account in determining the company's profit or loss. (5) In the following sections, which apply for the purpose of determining whether a sub-contractor's expenditure meets the requirements of subsection (3)(c) and (d)— (a) section 1170 (staffing costs), and (b) section 1177 (subsidised expenditure), references to a company are to be read as references to the sub-contractor. (6) Any apportionment of expenditure of the company or the sub-contractor necessary for the purposes of this section is to be made on a just and reasonable basis.

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1176 “Qualifying expenditure on sub-contracted land remediation”: other cases

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1177 “Subsidised expenditure”

(1) For the purposes of this Part a company's expenditure is treated as subsidised to the extent that— (a) a grant or subsidy is obtained in respect of the expenditure, or (b) it is otherwise met directly or indirectly by a person other than the company. (2) For the purposes of this a grant, subsidy or payment that is not allocated to particular expenditure is to be allocated to expenditure of the recipient on a just and reasonable basis.

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1178 Persons having a “relevant connection” to a company

For the purposes of this Part a person has a “relevant connection” to a company in a case where the company's land is in a contaminated or derelict state wholly or partly as a result of any thing done, or omitted to be done, by the person if— (a) the person is or was connected to the company when any such thing is or was done, or omitted to be done, by the person, (b) the person is or was connected to the company at the time when a major interest in the land in question is or was acquired by the company, or (c) the person is or was connected to the company at any time when relevant land remediation is or was undertaken (whether by the company itself or on its behalf).

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1178A “Major interest in land”

(1) References in this Part to the acquisition of a major interest in land are to the acquisition of a freehold interest in the land or of a relevant leasehold interest in the land. (2) The reference in subsection (1) to the acquisition of a freehold interest in land is— (a) in relation to land in England and Wales, to the acquisition of an estate in fee simple absolute (whether subsisting at law or in equity), (b) in relation to land in Scotland, to the acquisition of the interest of an owner of land, and (c) in relation to land in Northern Ireland, to the acquisition of any freehold estate (whether subsisting at law or in equity). (3) The reference in subsection (1) to the acquisition of a relevant leasehold interest in land is to the acquisition by grant or assignment (or assignation) of— (a) in relation to land in England and Wales, a term of years absolute (whether subsisting at law or in equity), (b) in relation to land in Scotland, the tenant's right over or interest in a property subject to a lease, or (c) in relation to land in Northern Ireland, any leasehold estate (whether subsisting at law or in equity), in relation to which the condition in subsection (4) is met. (4) That condition is that— (a) in the case of a grant, the term of years or period of the lease is at least 7 years, and (b) in the case of an assignment (or assignation) the unexpired portion of the term or period is at least 7 years.

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1179 Other definitions

In this Part — “controlled waters”— in relation to England and Wales, has the same meaning as in Part 3 of the Water Resources Act 1991 (c. 57), in relation to Scotland, has the same meaning as in section 30A of the Control of Pollution Act 1974 (c. 40), and in relation to Northern Ireland, means water in waterways and underground strata (as defined in Article 2(2) of the Water (Northern Ireland) Order 1999 (S.I. 1999/662 (N.I. 6)), ... ... “pollution of controlled waters” means the entry into controlled waters of— any poisonous, noxious or polluting matter, or any solid waste matter, ... and “UK property business loss”, in relation to a company, means a loss incurred by the company in carrying on a UK property business.

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1179A Overview of Part

(1) This Part— (a) lays down special rules about the taxation of companies in relation to certain production activities in creative sectors, and (b) provides an entitlement to a credit in respect of expenditure on those activities. (2) In particular— (a) this Chapter makes general provision about the application of Chapters 2 and 3 and about the interpretation of this Part; (b) Chapter 2 lays down the special rules about taxation; (c) Chapter 3 provides the entitlement to credit; (d) Chapter 4 makes provision about the application of this Part to films and television programmes; (e) Chapter 5 makes provision about the application of this Part to video games.

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1179AA Qualifying companies and productions

(1) Chapters 2 and 3 apply where there is a qualifying production and a qualifying company for that production. (2) The later Chapters supply the meanings of those terms. (3) See in particular— (a) section 1179D, in relation to films and television programmes; (b) section 1179F, in relation to video games. (4) Whether a company is the qualifying company for a qualifying production (including whether the production is a qualifying production) is to be assessed separately in relation to each accounting period of the company. (5) The assessment is to be made by reference to the state of affairs at the end of that period. (6) So far as future events are relevant to the assessment, it is to be made by reference to the reasonable expectations of the company at that time. (7) Subsections (5) and (6) are subject to any provision of this Part that provides for— (a) a production no longer to be regarded as a qualifying production in an accounting period as a result of events after the end of that period ; (b) the submission of a film, television programme or video game certificate after the end of an accounting period. (8) Once a qualifying company has made an election under section 1179B(1) in respect of a qualifying production, no other company can subsequently be the qualifying company for that production. (9) In this Part, “production”, except when contained in another defined term or used to refer to the act of producing something, means— (a) a film (see section 1179DA), (b) a television programme (see section 1179DD), or (c) a video game.

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1179AB UK expenditure

(1) In this Part, “UK expenditure” means expenditure on goods or services that are used or consumed in the United Kingdom. (2) Any apportionment of expenditure for the purposes of this Part between expenditure that is and is not UK expenditure is to be made on a just and reasonable basis.

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1179AC Company tax returns

(1) In this Part, “company tax return” has the same meaning as in Schedule 18 to FA 1998 (see paragraph 3(1)). (2) Any amendment to a company tax return that must be made by virtue of this Part, and any assessment to give effect to such a requirement, can be made despite any limitation on the time within which such an amendment or assessment can normally be made.

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1179AD Groups

For the purposes of this Part, a company is in the same group as another company if those companies are in the same group for the purposes of Part 5 of CTA 2010.

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1179AE Regulations

(1) Regulations made by the Secretary of State under this Part are to be made by statutory instrument. (2) An instrument containing such regulations is subject to annulment in pursuance of a resolution of the House of Commons. (3) A power to make regulations under this Part includes the power to make incidental, supplemental, consequential and transitional provision and savings.

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1179B Election to tax qualifying production as separate trade

(1) The qualifying company for a qualifying production may elect in its company tax return for an accounting period for the production to be taxed as a separate trade. (2) The effect of such an election is that the activities of the company in relation to the production are to be treated for corporation tax purposes as a trade separate from any other activities of the company (including activities in relation to other qualifying productions). (3) In this Part— (a) that trade is called “the separate production trade”; (b) the accounting period to which the return containing the election relates is called “the opt-in period”.

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1179BA Duration of separate trade

(1) When the qualifying company is treated as beginning to carry on the separate production trade is determined by— (a) section 1179DW, in the case of a film or television programme; (b) section 1179FO, in the case of a video game. (2) If the result is that the separate production trade is treated as having been carried on in an accounting period before the opt-in period, any relevant company tax return must be amended so as to give effect to that treatment in that earlier accounting period. (3) Once a company has made an election under section 1179B(1), the activities of the company in relation to the production are to continue to be treated as a separate trade in accordance with this Chapter even if— (a) the production ceases to be a qualifying production, or (b) the company ceases to be the qualifying company for it. (4) That is the case even if the production ceases to be regarded as a qualifying production in the opt-in period as a result of events after the end of that period. (5) In the following provisions of this Chapter, “qualifying production” and “qualifying company” are accordingly capable of including productions or companies that used to be so.

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1179BB Calculation of profits

(1) The profits of the separate production trade are to be calculated in accordance with this section. (2) For the first period of account, the following are to be brought into account— (a) as a debit, the costs of the qualifying production incurred by the qualifying company to date, and (b) as a credit, the proportion of the qualifying company’s estimated total income from the qualifying production that is treated as earned at the end of that period. (3) For subsequent periods of account, the following are to be brought into account— (a) as a debit, the difference between— (i) the amount of the costs of the qualifying production incurred by the qualifying company to date, and (ii) the corresponding amount for the previous period, and (b) as a credit, the difference between— (i) the proportion of the qualifying company’s estimated total income from the qualifying production that is treated as earned at the end of that period, and (ii) the corresponding amount for the previous period. (4) The proportion of the qualifying company’s estimated total income that is treated as earned at the end of a period of account is given by— C/T×I where— C is the total of the costs of the qualifying production incurred by the qualifying company to date, T is the estimated total cost to the qualifying company of the qualifying production, and I is the qualifying company’s estimated total income from the qualifying production. (5) What counts as costs of, and income from, the qualifying production is determined by— (a) section 1179DX, in the case of a film or television programme; (b) section 1179FP, in the case of a video game. (See also section 1179CB.) (6) But nothing in this Part, except section 1179BE, allows an amount to count as costs of the qualifying production if it would not generally be allowed as a deduction in calculating the profits of a trade for corporation tax purposes. (7) Estimates for the purposes of this section must be made— (a) as at the balance sheet date for each period of account, and (b) on a just and reasonable basis taking into consideration all relevant circumstances. (8) Subsection (9) applies if a period of account of the separate production trade does not coincide with an accounting period of the qualifying company. (9) The expenditure and receipts brought into account for the period under this section, and the resulting profit or loss, are to be apportioned to accounting periods of the company for the purposes of this Part by reference to the number of days in the periods concerned.

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1179BC When costs are to be taken as incurred

(1) For the purposes of section 1179BB, costs are incurred when they are represented in the state of completion of the work in progress. (2) Accordingly— (a) payments in advance for work to be done are to be ignored until the work has been carried out, and (b) deferred payments are to be recognised to the extent that the work is represented in the state of completion. (3) But an amount that has not been paid is not an incurred cost until there is an unconditional obligation to pay it. (4) If an obligation is linked to income being earned from the qualifying production, no amount is to be brought into account in respect of the costs of the obligation unless an appropriate amount of income is or has been brought into account.

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1179BD Preliminary expenditure

(1) This section applies if, before the qualifying company began to carry on the separate production trade, it incurred expenditure on the development of the qualifying production. (2) The expenditure may be treated as expenditure of the separate production trade incurred immediately after the company began to carry on the trade. (3) If expenditure so treated has previously been taken into account for other tax purposes, any relevant company tax return must be amended accordingly.

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1179BE Treatment of certain capital amounts as revenue

(1) This section applies for corporation tax purposes in relation to the separate production trade. (2) Expenditure that— (a) counts as costs of the qualifying production, and (b) would (apart from this subsection) be regarded as of a capital nature by reason only of being incurred on the creation of an asset in the form of the qualifying production, is to be treated as expenditure of a revenue nature. (As to other capital expenditure, see section 53 and section 1179BB(6).) (3) Receipts that— (a) count as income from the qualifying production, and (b) would (apart from this subsection) be regarded as of a capital nature, are to be treated as receipts of a revenue nature.

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1179BF Carrying forward of production losses

(1) This section applies if a company makes a loss in the separate production trade in a pre-completion period (see sections 1179DY and 1179FQ). (2) The loss is not available for loss relief, except as provided in subsections (3) and (5). (3) The loss is not prevented from being carried forward under section 45B of CTA 2010 to be deducted from profits of the separate production trade in a subsequent period. (4) If the loss is so carried forward and deducted, the deduction is to be ignored for the purposes of section 269ZB of CTA 2010. (5) To the extent that the loss could be carried forward under section 45B of CTA 2010 to the completion period or a subsequent accounting period, it may instead be treated for the purposes of section 37 and Part 5 of CTA 2010 as a loss made in that period. (6) Subsection (5) does not apply to the extent that the loss is carried forward by virtue of section 1179BG. (7) In this section, “loss relief” includes any means by which a loss might be used to reduce the amount in respect of which the company, or any other person, is chargeable to tax.

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1179BG Transfer of terminal loss to other qualifying production

(1) This section applies if— (a) a company (“the principal company”) ceases to carry on the separate production trade in respect of a production, (b) the principal company could, but for the cessation of that trade, carry an amount (“the terminal loss”) forward under section 45A or 45B of CTA 2010 to an accounting period after that in which the cessation occurs, (c) when the trade ceases, either the principal company or another company in the same group carries on another separate production trade under this Chapter (“the other trade”), and (d) the ceased trade and the other trade both relate to productions that are or were qualifying productions by virtue of the same Chapter of this Part. (2) If the other trade is carried on by the principal company, the company may, by making a claim, treat the terminal loss (or part of it) as a loss made in the other trade that is carried forward under section 45B of CTA 2010. (3) If the other trade is carried on by another company— (a) the principal company may surrender the terminal loss (or part of it) to the other company, and (b) the other company may, by making a claim, elect for the surrendered amount to be treated as a loss made in the other trade that is carried forward under section 45B of CTA 2010. (4) The carrying forward of a loss by virtue of subsection (2) or (3) is to the first accounting period beginning after the cessation of the ceased trade. (5) If— (a) the other trade is no longer carried on that accounting period, (b) the company carrying on the other trade is not entitled to an expenditure credit under Chapter 3 for that accounting period in respect of the other trade, or (c) in a case within subsection (3), the other company does not make the election in relation to that accounting period, the claim under subsection (2) or the surrender under subsection (3) is to be treated as not having been made. (6) The Treasury may, in relation to surrenders or elections under subsection (3), make provision by regulations corresponding, subject to such adaptations or modifications as appear to them to be appropriate, to that made by Part 8 of Schedule 18 to the FA 1998. (7) A deduction made under section 45B of CTA 2010 by virtue of this section is to be ignored for the purposes of section 269ZB of CTA 2010. (8) The principal company is not entitled to relief under section 45F of CTA 2010 in respect of an amount surrendered under subsection (3).

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1179C Entitlement to expenditure credit

(1) The qualifying company for a qualifying production is entitled to an expenditure credit for— (a) the opt-in period, and (b) (subject to subsection (2)) any subsequent accounting period in which it continues to carry on the separate production trade. (2) If in any of those subsequent periods the production is no longer a qualifying production, or the company is no longer the qualifying company for it, the company is not entitled to an expenditure credit for the period. (3) But that does not affect the entitlement of the company for any subsequent period in which the production is once again a qualifying production or the company is once again the qualifying company for it. (4) If a production ceases to be regarded as a qualifying production in an accounting period as a result of events after the end of that period— (a) the qualifying company is no longer entitled to an expenditure credit for that period, and (b) any company tax return drawn up in reliance on such an entitlement must be amended so as to remove anything derived from that entitlement. (5) An expenditure credit to which a company is entitled may be claimed by the company in accordance with Part 9D of Schedule 18 to FA 1998.

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