Corporation Tax Act, 1976

Relief in respect of losses or deficiencies within Case IV or V of Schedule D.

183.—Where a company is entitled to relief under section 89 (relief under Case V for losses) or 310 (relief under Case IV for losses) of the Income Tax Act, 1967 , or would be entitled to relief under the said section 310 if section 237 (5) of the Income Tax Act, 1967 , had not been enacted, for the year 1975-76 or an earlier year of assessment in respect of a loss within Case IV of Schedule D or a deficiency or an excess of deficiencies within Case V of Schedule D, with the addition of any associated capital allowances in each case, and because of an insufficiency of income of the description concerned relief could not be fully granted to the company under those sections for any of those years of assessment, the unrelieved amount of loss, deficiency or excess of deficiencies (with the addition of any unrelieved associated capital allowances), as the case may be, shall be treated as if it were a loss in a trade carried on by the company and, if the company so requires, may be relieved under section 182 against income of the same description of the company within the charge to corporation tax as if that income were income of the same trade and section 182 shall apply accordingly, with any necessary modifications:

Provided that—

(a) a loss within Case IV of Schedule D, with the addition of any associated capital allowances, shall be relieved under this section only against income of the company chargeable to corporation tax under Case IV of Schedule D, and similarly a deficiency or an excess of deficiencies within Case V of Schedule D, with the addition of any associated capital allowances, shall be relieved only against income of the company chargeable to corporation tax under Case V of Schedule D; and

(b) so much of any deficiency or so much of any amount treated as a loss as under section 62 of the Finance Act, 1974 (taxation of rents: restriction in respect of certain rent and interest), could not be carried forward or set against profits or gains for income tax purposes if that tax had continued, shall be treated as not being a deficiency or loss for the purposes of this section.