Finance Act, 1980
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Provisions relating to relief for certain losses and capital allowances carried forward from 1975-76. |
47.—(1) Section 182 of the Corporation Tax Act, 1976 , is hereby amended— | |||||||
(a) in subsection (1), by the substitution for the definition of “relevant corporation tax” of the following definition: | ||||||||
“‘relevant corporation tax’ has, in relation to an accounting period, the meaning assigned to it in subsection (10) (inserted by the Finance Act, 1980) of section 58 with the substitution of ‘the accounting period’ for ‘the relevant accounting period’.”, | ||||||||
and | ||||||||
(b) in the proviso to subsection (3), by the insertion after paragraph (b) of the following paragraph: | ||||||||
“(bb) where the corporation tax payable by the company for an accounting period is reduced by virtue of a claim under section 41 (2) (basis of relief from corporation tax: manufacturing companies) of the Finance Act, 1980, the relief to be given under this section for the accounting period shall be reduced in the same proportion as the corporation tax payable by the company for the accounting period so far as it is attributable to the income from the trade is so reduced; and the corporation tax attributable to the income from the trade shall be the amount mentioned in paragraph (b);”. | ||||||||
(2) Where, for any accounting period of a company which coincides with or includes a relevant accounting period— | ||||||||
(a) the corporation tax which is referable to the income of the company from the sale in the course of a trade of goods for the relevant accounting period falls to be reduced under section 41, and | ||||||||
(b) a reduced relief under section 182 of the Corporation Tax Act, 1976 , is allowed as respects the accounting period in accordance with the provisions of paragraph (bb) of the proviso to subsection (3) of the said section 182, | ||||||||
then— | ||||||||
(i) the amount of the company's income which, apart from this paragraph, falls to be taken into account in the definition of A or C in section 45 (1) in respect of the relevant accounting period shall be reduced by an amount determined by the formula | ||||||||
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where— | ||||||||
G is the amount of the reduction in the relief in respect of the trade for the accounting period under the provisions of the said paragraph (bb) of the said proviso, | ||||||||
H is the income of the accounting period within the meaning of section 28 (8) of the Corporation Tax Act, 1976 , and | ||||||||
J is the relevant corporation tax for the accounting period within the meaning of the said section 182, | ||||||||
and | ||||||||
(ii) the amount of the corporation tax (as reduced under section 41) which, apart from this paragraph, falls to be taken into account in the definition of B or D in section 45 (1) in respect of the relevant accounting period shall be reduced by an amount determined by the formula | ||||||||
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where G has the same meaning as in paragraph (i). |