Finance Act, 1984

Stock relief: corporation tax.

49.—(1) Subject to the provisions of this Chapter, where a company which is resident in the State carries on in an accounting period a qualifying trade in respect of which it is within the charge to corporation tax under Case I of Schedule D it shall, in the computation for the purposes of corporation tax of its income from the qualifying trade, be entitled to a deduction under this section as if the deduction were a trading expense of the qualifying trade incurred in the accounting period.

(2) In any case where a company is entitled, in relation to an accounting period, to a deduction under this section in respect of a qualifying trade, that deduction shall be an amount determined by the formula

A

×

3

____

100

×

B

___

12

where—

A is the value at the beginning of the accounting period of the trading stock of the qualifying trade, and

B is the number of months or fractions of months comprised in the accounting period:

Provided that in no case shall the amount of the deduction as so computed exceed the amount of the income from the qualifying trade for the accounting period after account has been taken of all reductions of that income for that period by virtue of sections 16 and 18 of the Corporation Tax Act, 1976 , and all deductions from and additions to that income for that period by virtue of section 14 of that Act, but before any deduction is allowed under this section.

(3) A company shall not be entitled to a deduction under this section for any accounting period which ends before the 6th day of April, 1983, or after the 5th day of April, 1984.

(4) A company shall not be entitled to a deduction under this section for an accounting period unless it makes a claim for the deduction before—

(a) the date on which the assessment to corporation tax on the company for the accounting period becomes final and conclusive, or

(b) the 31st day of December next following the end of the year of assessment in which the accounting period ends,

whichever is the later.