(1) This section contains provision for the purposes of section 357RB(2) about the amount of the Northern Ireland supplementary deduction.
(2) If the accounting period falls within only one financial year, the amount of the Northern Ireland supplementary deduction is—
(A−B)×MR−NIRNIR
where—
A is the amount of the Northern Ireland additional deduction brought into account in the accounting period;
B is the amount of Northern Ireland losses surrendered in any claim under section 1201 of CTA 2009 for the accounting period;
MR is the main rate for the financial year;
NIR is the Northern Ireland rate for the financial year.
(3) If the accounting period falls within more than one financial year, the amount of the Northern Ireland supplementary deduction is determined by taking the following steps.
Step 1 Calculate, for each financial year, the amount that would be the Northern Ireland supplementary deduction for the accounting period if it fell within only that financial year (see subsection (2)).
Step 2 Multiply each amount calculated under step 1 by the proportion of the accounting period that falls within the financial year for which it is calculated.
Step 3 Add together each amount found under step 2.
357RD Film tax credit: Northern Ireland supplementary deduction ignored
For the purpose of determining the available loss of a company under section 1201 of CTA 2009 (film tax credit claimable if company has surrenderable loss) for any accounting period, any Northern Ireland supplementary deduction made by the company in the period (and any Northern Ireland supplementary deduction made in any previous accounting period) is to be ignored.
357RE Artificially inflated claims for additional deduction
Section 1205(1)(a) and (2)(a) of CTA 2009 (artificially inflated claims for additional deduction or film tax credit) has effect as if references to an additional deduction under Chapter 3 of Part 15 of that Act included a Northern Ireland supplementary deduction under this Chapter.
357RF Restriction on use of losses while film is in production
(1) Section 1209 of CTA 2009 (restriction on use of losses while film is in production) has effect subject as follows.
(2) The reference in subsection (1) of that section to a loss made in the separate film trade in a pre-completion period is, if the company is a Northern Ireland company in that period, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (2) and (3) of that section are to be read accordingly.
(3) Subsection (4) applies if a Northern Ireland company has, in a pre-completion period—
(a) both Northern Ireland losses of the trade and mainstream profits of the trade, or
(b) both mainstream losses of the trade and Northern Ireland profits of the trade.
(4) The company may make a claim under section 37 (relief for trade losses against total profits) for relief for the losses mentioned in subsection (3)(a) or (b).
(5) But relief on such a claim is available only—
(a) in the case of a claim for relief for Northern Ireland losses, against mainstream profits of the trade of the same period;
(b) in the case of a claim for relief for mainstream losses, against Northern Ireland profits of the trade of the same period.
(6) In this section “a pre-completion period” has the same meaning as in section 1209 of CTA 2009 (see section 1208(2) of that Act).
(1) Section 1210 of CTA 2009 (restriction on use of losses in later periods) has effect subject as follows.
(2) The reference in subsection (2) of that section to a loss made in the separate film trade is, in relation to a loss made in a period in which the company is a Northern Ireland company, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (3) and (6) of that section are to be read accordingly.
(3) The reference in subsection (4) of that section to a loss made in the separate film trade in a relevant later period is, where the company is a Northern Ireland company in the period, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (5) , (5A) and (6) of that section are to be read accordingly.
(4) Subsection (6) of that section has effect, in relation to Northern Ireland losses, as if the reference to an additional deduction under Chapter 3 of Part 15 of that Act included a reference to a Northern Ireland supplementary deduction under this Chapter.
(1) Section 1211 of CTA 2009 (terminal losses) has effect subject as follows.
(2) Where—
(a) a company makes an election under subsection (3) of that section (election to treat terminal loss as loss brought forward of different trade) in relation to all or part of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(3) Where—
(a) a company makes a claim under subsection (6) of that section (claim to treat terminal loss as loss brought forward by different company) in relation to part or all of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(1) This Chapter makes provision about the operation of Part 15A of CTA 2009 (television production) in relation to expenditure incurred by a company in an accounting period in which it is a Northern Ireland company.
(2) In this Chapter—
(a) “Northern Ireland expenditure” means expenditure incurred in a trade to the extent that the expenditure forms part of the Northern Ireland profits or Northern Ireland losses of the trade;
(b) “the separate programme trade” has the same meaning as in Chapter 3 of Part 15A of CTA 2009 (see section 1216C(6) of that Act);
(c) “qualifying expenditure” has the same meaning as in that Chapter (see section 1216CF(3) of that Act).
(3) References in Part 15A of CTA 2009 to “television tax relief” include relief under this Chapter.
(1) In this Chapter “a Northern Ireland additional deduction” means so much of a deduction under section 1216CF of CTA 2009 (additional deduction for qualifying expenditure) as is calculated by reference to qualifying expenditure that is Northern Ireland expenditure.
(2) A Northern Ireland additional deduction forms part of the Northern Ireland profits or Northern Ireland losses of the separate programme trade.
(1) This section applies where—
(a) a company is entitled under section 1216CF of CTA 2009 to an additional deduction in calculating the profit or loss of the separate programme trade in an accounting period,
(b) the company is a Northern Ireland company in the period,
(c) the additional deduction is wholly or partly a Northern Ireland additional deduction, and
(d) any of the following conditions is met—
(i) the company does not have a surrenderable loss in the accounting period;
(ii) the company has a surrenderable loss in the accounting period, but does not make a claim under section 1216CH of CTA 2009 (television tax credit claimable if company has surrenderable loss) for the period;
(iii) the company has a surrenderable loss in the accounting period and makes a claim under that section for the period, but the amount of Northern Ireland losses surrendered on the claim is less than the Northern Ireland additional deduction.
(2) The company is entitled to make another deduction (“a Northern Ireland supplementary deduction”) in respect of qualifying expenditure.
(3) See section 357SC for provision about the amount of the Northern Ireland supplementary deduction.
(4) The Northern Ireland supplementary deduction—
(a) is made in calculating the profit or loss of the separate programme trade, and
(b) forms part of the Northern Ireland profits or Northern Ireland losses of the separate programme trade.
(5) In this section “surrenderable loss” has the meaning given by section 1216CH of CTA 2009.
(1) This section contains provision for the purposes of section 357SB(2) about the amount of the Northern Ireland supplementary deduction.
(2) If the accounting period falls within only one financial year, the amount of the Northern Ireland supplementary deduction is—
(A−B)×MR−NIRNIR
where—
A is the amount of the Northern Ireland additional deduction brought into account in the accounting period;
B is the amount of Northern Ireland losses surrendered in any claim under section 1216CH of CTA 2009 for the accounting period;
MR is the main rate for the financial year;
NIR is the Northern Ireland rate for the financial year.
(3) If the accounting period falls within more than one financial year, the amount of the Northern Ireland supplementary deduction is determined by taking the following steps.
Step 1 Calculate, for each financial year, the amount that would be the Northern Ireland supplementary deduction for the accounting period if it fell within only that financial year (see subsection (2)).
Step 2 Multiply each amount calculated under step 1 by the proportion of the accounting period that falls within the financial year for which it is calculated.
Step 3 Add together each amount found under step 2.
For the purpose of determining the available loss of a company under section 1216CH of CTA 2009 (television tax credit claimable if company has surrenderable loss) for any accounting period, any Northern Ireland supplementary deduction made by the company in the period (and any Northern Ireland supplementary deduction made in any previous accounting period) is to be ignored.
357SE Artificially inflated claims for additional deduction
Section 1216CL(1)(a) and (2)(a) of CTA 2009 (artificially inflated claims for additional deduction or tax credit) has effect as if references to an additional deduction under Chapter 3 of Part 15A of that Act included a Northern Ireland supplementary deduction under this Chapter.
357SF Restriction on use of losses while programme in production
(1) Section 1216DA of CTA 2009 (restriction on use of losses while programme in production) has effect subject as follows.
(2) The reference in subsection (1) of that section to a loss made in the separate programme trade in a pre-completion period is, if the company is a Northern Ireland company in that period, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (2) and (3) of that section are to be read accordingly.
(3) Subsection (4) applies if a Northern Ireland company has, in a pre-completion period—
(a) both Northern Ireland losses of the trade and mainstream profits of the trade, or
(b) both mainstream losses of the trade and Northern Ireland profits of the trade.
(4) The company may make a claim under section 37 (relief for trade losses against total profits) for relief for the losses mentioned in subsection (3)(a) or (b).
(5) But relief on such a claim is available only—
(a) in the case of a claim for relief for Northern Ireland losses, against mainstream profits of the trade of the same period;
(b) in the case of a claim for relief for mainstream losses, against Northern Ireland profits of the trade of the same period.
(6) In this section “a pre-completion period” has the same meaning as in section 1216DA of CTA 2009 (see section 1216D(2) of that Act).
(1) Section 1216DB of CTA 2009 (use of losses in later periods) has effect subject as follows.
(2) The reference in subsection (2) of that section to a loss made in the separate programme trade is, in relation to a loss made in a period in which the company is a Northern Ireland company, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (3) and (6) of that section are to be read accordingly.
(3) The reference in subsection (4) of that section to a loss made in the separate programme trade in a relevant later period is, where the company is a Northern Ireland company in the period, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (5), (5A) and (6) of that section are to be read accordingly.
(4) Subsection (6) of that section has effect, in relation to Northern Ireland losses, as if the reference to an additional deduction under Chapter 3 of Part 15A of that Act included a reference to a Northern Ireland supplementary deduction under this Chapter.
(1) Section 1216DC of CTA 2009 (terminal losses) has effect subject as follows.
(2) Where—
(a) a company makes an election under subsection (3) of that section (election to treat terminal loss as loss brought forward of different trade) in relation to all or part of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(3) Where—
(a) a company makes a claim under subsection (6) of that section (claim to treat terminal loss as loss brought forward by different company) in relation to part or all of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(1) This Chapter makes provision about the operation of Part 15B of CTA 2009 (video games development) in relation to expenditure incurred by a company in an accounting period in which it is a Northern Ireland company.
(2) In this Chapter—
(a) “Northern Ireland expenditure” means expenditure incurred in a trade to the extent that the expenditure forms part of the Northern Ireland profits or Northern Ireland losses of the trade;
(b) “the separate video game trade” has the same meaning as in Chapter 3 of Part 15B of CTA 2009 (see section 1217C(6) of that Act);
(c) “qualifying expenditure” has the same meaning as in that Chapter (see section 1217CF(3) of that Act).
(3) References in Part 15B of CTA 2009 to “video games tax relief” include relief under this Chapter.
(1) In this Chapter “a Northern Ireland additional deduction” means so much of a deduction under section 1217CF of CTA 2009 (additional deduction for qualifying expenditure) as is calculated by reference to qualifying expenditure that is Northern Ireland expenditure.
(2) A Northern Ireland additional deduction forms part of the Northern Ireland profits or Northern Ireland losses of the separate video game trade.
(1) This section applies where—
(a) a company is entitled under section 1217CF of CTA 2009 to an additional deduction in calculating the profit or loss of the separate video game trade in an accounting period,
(b) the company is a Northern Ireland company in the period,
(c) the additional deduction is wholly or partly a Northern Ireland additional deduction, and
(d) any of the following conditions is met—
(i) the company does not have a surrenderable loss in the accounting period;
(ii) the company has a surrenderable loss in the accounting period, but does not make a claim under section 1217CH of CTA 2009 (video game tax credit claimable if company has surrenderable loss) for the period;
(iii) the company has a surrenderable loss in the accounting period and makes a claim under that section for the period, but the amount of Northern Ireland losses surrendered on the claim is less than the Northern Ireland additional deduction.
(2) The company is entitled to make another deduction (“a Northern Ireland supplementary deduction”) in respect of qualifying expenditure.
(3) See section 357TC for provision about the amount of the Northern Ireland supplementary deduction.
(4) The Northern Ireland supplementary deduction—
(a) is made in calculating the profit or loss of the separate video game trade, and
(b) forms part of the Northern Ireland profits or Northern Ireland losses of the separate video game trade.
(5) In this section “surrenderable loss” has the meaning given by section 1217CH of CTA 2009.
(1) This section contains provision for the purposes of section 357TB(2) about the amount of the Northern Ireland supplementary deduction.
(2) If the accounting period falls within only one financial year, the amount of the Northern Ireland supplementary deduction is—
(A−B)×MR−NIRNIR
where—
A is the amount of the Northern Ireland additional deduction brought into account in the accounting period;
B is the amount of Northern Ireland losses surrendered in any claim under section 1217CH of CTA 2009 for the accounting period;
MR is the main rate for the financial year;
NIR is the Northern Ireland rate for the financial year.
(3) If the accounting period falls within more than one financial year, the amount of the Northern Ireland supplementary deduction is determined by taking the following steps.
Step 1 Calculate, for each financial year, the amount that would be the Northern Ireland supplementary deduction for the accounting period if it fell within only that financial year (see subsection (2)).
Step 2 Multiply each amount calculated under step 1 by the proportion of the accounting period that falls within the financial year for which it is calculated.
Step 3 Add together each amount found under step 2.
For the purpose of determining the available loss of a company under section 1217CH of CTA 2009 (video game tax credit claimable if company has surrenderable loss) for any accounting period, any Northern Ireland supplementary deduction made by the company in the period (and any Northern Ireland supplementary deduction made in any previous accounting period) is to be ignored.
357TE Artificially inflated claims for additional deduction
Section 1217CL(1)(a) and (2)(a) of CTA 2009 (artificially inflated claims for additional deduction or film tax credit) has effect as if references to an additional deduction under Chapter 3 of Part 15B of that Act included a Northern Ireland supplementary deduction under this Chapter.
357TF Restriction on use of losses while video game in development
(1) Section 1217DA of CTA 2009 (restriction on use of losses while video game in development) has effect subject as follows.
(2) The reference in subsection (1) of that section to a loss made in the separate video game trade in a pre-completion period is, if the company is a Northern Ireland company in that period, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (2) and (3) of that section are to be read accordingly.
(3) Subsection (4) applies if a Northern Ireland company has, in a pre-completion period—
(a) both Northern Ireland losses of the trade and mainstream profits of the trade, or
(b) both mainstream losses of the trade and Northern Ireland profits of the trade.
(4) The company may make a claim under section 37 (relief for trade losses against total profits) for relief for the losses mentioned in subsection (3)(a) or (b).
(5) But relief on such a claim is available only—
(a) in the case of a claim for relief for Northern Ireland losses, against mainstream profits of the trade of the same period;
(b) in the case of a claim for relief for mainstream losses, against Northern Ireland profits of the trade of the same period.
(6) In this section “a pre-completion period” has the same meaning as in section 1217DA of CTA 2009 (see section 1217D(2) of that Act).
(1) Section 1217DB of CTA 2009 (use of losses in later periods) has effect subject as follows.
(2) The reference in subsection (2) of that section to a loss made in the separate video game trade is, in relation to a loss made in a period in which the company is a Northern Ireland company, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (3) and (6) of that section are to be read accordingly.
(3) The reference in subsection (4) of that section to a loss made in the separate video game trade in a relevant later period is, where the company is a Northern Ireland company in the period, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (5), (5A) and (6) of that section are to be read accordingly.
(4) Subsection (6) of that section has effect, in relation to Northern Ireland losses, as if the reference to an additional deduction under Chapter 3 of Part 15B of that Act included a reference to a Northern Ireland supplementary deduction under this Chapter.
(1) Section 1217DC of CTA 2009 (terminal losses) has effect subject as follows.
(2) Where—
(a) a company makes an election under subsection (3) of that section (election to treat terminal loss as loss brought forward of different trade) in relation to all or part of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(3) Where—
(a) a company makes a claim under subsection (6) of that section (claim to treat terminal loss as loss brought forward by different company) in relation to part or all of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(1) This Chapter makes provision about the operation of Part 15C of CTA 2009 (theatrical productions) in relation to expenditure incurred by a company in an accounting period in which it is a Northern Ireland company.
(2) In this Chapter—
(a) “Northern Ireland expenditure” means expenditure incurred in a trade to the extent that the expenditure forms part of the Northern Ireland profits or Northern Ireland losses of the trade;
(b) “the separate theatrical trade” has the same meaning as in Part 15C of CTA 2009 (see section 1217I of that Act);
(c) “qualifying expenditure” has the same meaning as in that Part (see section 1217JA of that Act).
(1) In this Chapter “a Northern Ireland additional deduction” means so much of a deduction under section 1217H of CTA 2009 (claim for additional deduction) as is calculated by reference to qualifying expenditure that is Northern Ireland expenditure.
(2) A Northern Ireland additional deduction forms part of the Northern Ireland profits or Northern Ireland losses of the separate theatrical trade.
(1) This section applies where—
(a) a company is entitled under section 1217H of CTA 2009 to an additional deduction in calculating the profit or loss of the separate theatrical trade in an accounting period,
(b) the company is a Northern Ireland company in the period,
(c) the additional deduction is wholly or partly a Northern Ireland additional deduction, and
(d) any of the following conditions is met—
(i) the company does not have a surrenderable loss in the accounting period;
(ii) the company has a surrenderable loss in the accounting period, but does not make a claim under section 1217K of CTA 2009 (theatre tax credit claimable if company has surrenderable loss) for the period;
(iii) the company has a surrenderable loss in the accounting period and makes a claim under that section for the period, but the amount of Northern Ireland losses surrendered on the claim is less than the Northern Ireland additional deduction.
(2) The company is entitled to make another deduction (“a Northern Ireland supplementary deduction”) in respect of qualifying expenditure.
(3) See section 357UC for provision about the amount of the Northern Ireland supplementary deduction.
(4) The Northern Ireland supplementary deduction—
(a) is made in calculating the profit or loss of the separate theatrical trade, and
(b) forms part of the Northern Ireland profits or Northern Ireland losses of the separate theatrical trade.
(5) In this section “surrenderable loss” has the meaning given by section 1217KA of CTA 2009.
(1) This section contains provision for the purposes of section 357UB(2) about the amount of the Northern Ireland supplementary deduction.
(2) If the accounting period falls within only one financial year, the amount of the Northern Ireland supplementary deduction is—
(A−B)×MR−NIRNIR
where—
A is the amount of the Northern Ireland additional deduction brought into account in the accounting period;
B is the amount of Northern Ireland losses surrendered in any claim under section 1217K of CTA 2009 for the accounting period;
MR is the main rate for the financial year;
NIR is the Northern Ireland rate for the financial year.
(3) If the accounting period falls within more than one financial year, the amount of the Northern Ireland supplementary deduction is determined by taking the following steps.
Step 1 Calculate, for each financial year, the amount that would be the Northern Ireland supplementary deduction for the accounting period if it fell within only that financial year (see subsection (2)).
Step 2 Multiply each amount calculated under step 1 by the proportion of the accounting period that falls within the financial year for which it is calculated.
Step 3 Add together each amount found under step 2.
For the purpose of determining the available loss of a company under section 1217KA of CTA 2009 (amount of surrenderable loss) for any accounting period, any Northern Ireland supplementary deduction made by the company in the period (and any Northern Ireland supplementary deduction made in any previous accounting period) is to be ignored.
357UE Transactions not entered into for genuine commercial reasons
Section 1217LB of CTA 2009 (transactions not entered into for genuine commercial reasons) has effect as if the reference in subsection (2)(a) to an additional deduction under Part 15C of that Act included a reference to a Northern Ireland supplementary deduction under this Chapter.
357UF Restriction on use of losses before completion period
(1) Section 1217MA of CTA 2009 (restriction on use of losses before completion period) has effect subject as follows.
(2) The reference in subsection (1) of that section to a loss made in the separate theatrical trade in an accounting period preceding the completion period is, if the company is a Northern Ireland company in that period, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (2) and (3) of that section are to be read accordingly.
(3) Subsection (4) applies if a Northern Ireland company has, in an accounting period preceding the completion period—
(a) both Northern Ireland losses of the trade and mainstream profits of the trade, or
(b) both mainstream losses of the trade and Northern Ireland profits of the trade.
(4) The company may make a claim under section 37 (relief for trade losses against total profits) for relief for the losses mentioned in subsection (3)(a) or (b).
(5) But relief on such a claim is available only—
(a) in the case of a claim for relief for Northern Ireland losses, against mainstream profits of the trade of the same period;
(b) in the case of a claim for relief for mainstream losses, against Northern Ireland profits of the trade of the same period.
(6) In this section “the completion period” has the same meaning as in section 1217MA of CTA 2009 (see section 1217M(2) of that Act).
(1) Section 1217MB of CTA 2009 (use of losses in the completion period) has effect subject as follows.
(2) The reference in subsection (1) of that section to a loss made in the separate theatrical trade is, in relation to a loss made in a period in which the company is a Northern Ireland company, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (2) and (4) of that section are to be read accordingly.
(3) The references in subsection (3) of that section to a loss made in the separate theatrical trade in the completion period are, where the company is a Northern Ireland company in the period, references to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsection (4) of that section are to be read accordingly.
(4) Subsection (4) of that section has effect, in relation to Northern Ireland losses, as if the reference to an additional deduction under section 1217H of CTA 2009 included a reference to a Northern Ireland supplementary deduction under this Chapter.
(1) Section 1217MC of CTA 2009 (terminal losses) has effect subject as follows.
(2) Where—
(a) a company makes an election under subsection (2) of that section (election to treat terminal loss as loss brought forward of different trade) in relation to all or part of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
subsection (3) of that section has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
(3) Where—
(a) a company makes a claim under subsection (6) of that section (claim to treat terminal loss as loss brought forward by different company) in relation to part or all of a terminal loss, and
(b) the terminal loss is a Northern Ireland loss,
that subsection has effect as if the reference in it to a loss brought forward were to a Northern Ireland loss brought forward.
Section 1217N(3) of CTA 2009 (provisional entitlement to relief: definition of “the relieving provisions”) has effect as if the reference to section 1217H of CTA 2009 included section 357UB of this Act.
(1) This Chapter makes provision about the operation of Part 15D of CTA 2009 (orchestra tax relief) in relation to expenditure incurred by a company in an accounting period in which it is a Northern Ireland company.
(2) In this Chapter—
(a) “Northern Ireland expenditure” means expenditure incurred in a trade to the extent that the expenditure forms part of the Northern Ireland profits or Northern Ireland losses of the trade;
(b) the “separate orchestral trade” has the same meaning as in Part 15D of CTA 2009 (see section 1217Q(6) of that Act);
(c) “qualifying expenditure” has the same meaning as in Chapter 3 of that Part (see section 1217RF of that Act).
(3) References in Part 15D of CTA 2009 to “orchestra tax relief” include relief under this Chapter.
(1) In this Chapter “a Northern Ireland additional deduction” means so much of a deduction under section 1217RD of CTA 2009 (claim for additional deduction) as is calculated by reference to qualifying expenditure that is Northern Ireland expenditure.
(2) A Northern Ireland additional deduction forms part of the Northern Ireland profits or Northern Ireland losses of the separate orchestral trade.
(1) This section applies where—
(a) a company is entitled under section 1217RD of CTA 2009 to an additional deduction in calculating the profit or loss of the separate orchestral trade in an accounting period,
(b) the company is a Northern Ireland company in the period,
(c) the additional deduction is wholly or partly a Northern Ireland additional deduction, and
(d) any of the following conditions is met—
(i) the company does not have a surrenderable loss in the accounting period;
(ii) the company has a surrenderable loss in the accounting period, but does not make a claim under section 1217RG of CTA 2009 (orchestra tax credit claimable if company has surrenderable loss) for the period;
(iii) the company has a surrenderable loss in the accounting period and makes a claim under that section for the period, but the amount of Northern Ireland losses surrendered on the claim is less than the Northern Ireland additional deduction.
(2) The company is entitled to make another deduction (“a Northern Ireland supplementary deduction”) in respect of qualifying expenditure.
(3) See section 357UM for provision about the amount of the Northern Ireland supplementary deduction.
(4) The Northern Ireland supplementary deduction—
(a) is made in calculating the profit or loss of the separate orchestral trade, and
(b) forms part of the Northern Ireland profits or Northern Ireland losses of the separate orchestral trade.
(5) In this section “surrenderable loss” has the meaning given by section 1217RH of CTA 2009.
(1) This section contains provision for the purposes of section 357UL(2) about the amount of the Northern Ireland supplementary deduction.
(2) If the accounting period falls within only one financial year, the amount of the Northern Ireland supplementary deduction is—
( A − B ) × ( ( MR − NIR ) NIR )
where—
A is the amount of the Northern Ireland additional deduction brought into account in the accounting period;
B is the amount of Northern Ireland losses surrendered in any claim under section 1217RG of CTA 2009 for the accounting period;
MR is the main rate for the financial year;
NIR is the Northern Ireland rate for the financial year.
(3) If the accounting period falls within more than one financial year, the amount of the Northern Ireland supplementary deduction is determined by taking the following steps.
Step 1 Calculate, for each financial year, the amount that would be the Northern Ireland supplementary deduction for the accounting period if it fell within only that financial year (see subsection (2)).
Step 2 Multiply each amount calculated under step 1 by the proportion of the accounting period that falls within the financial year for which it is calculated.
Step 3 Add together each amount found under step 2.
For the purpose of determining the available loss of a company under section 1217RH of CTA 2009 (amount of surrenderable loss) for any accounting period, any Northern Ireland supplementary deduction made by the company in the period (and any Northern Ireland supplementary deduction made in any previous accounting period) is to be ignored.
357UO Restriction on use of losses before completion period
(1) Section 1217SA of CTA 2009 (restriction on use of losses before completion period) has effect subject as follows.
(2) The reference in subsection (1) of that section to a loss made in the separate orchestral trade in an accounting period preceding the completion period is, if the company is a Northern Ireland company in that period, a reference to—
(a) any Northern Ireland losses of the trade of the period, or
(b) any mainstream losses of the trade of the period;
and references to losses in subsections (2) and (3) of that section are to be read accordingly.
(3) Subsection (4) applies if a Northern Ireland company has, in an accounting period preceding the completion period—
(a) both Northern Ireland losses of the trade and mainstream profits of the trade, or
(b) both mainstream losses of the trade and Northern Ireland profits of the trade.
(4) The company may make a claim under section 37 (relief for trade losses against total profits) for relief for the losses mentioned in subsection (3)(a) or (b).
(5) But relief on such a claim is available only—
(a) in the case of a claim for relief for Northern Ireland losses, against mainstream profits of the trade of the same period;
(b) in the case of a claim for relief for mainstream losses, against Northern Ireland profits of the trade of the same period.
(6) In this section “the completion period” has the same meaning as in section 1217SA of CTA 2009 (see section 1217S(2) of that Act).