Finance Act, 1964


Corporation Profits Tax

Relief in respect of certain losses.

25.—(1) Subject to the provisions of this section, where the company carrying on a business has, in any accounting period ending on or after the 1st day of January, 1962, sustained a loss in the business (to be computed in like manner as profits arising in an accounting period are computed for the purpose of corporation profits tax), the company may claim that the loss, in so far as it is not otherwise taken into account so as to reduce or relieve any charge to corporation profits tax, shall be carried forward and, as far as may be, deducted from or set off against the profits arising from the business in the next accounting period and, if and so far as it exceeds the profits so arising in that period, against the profits so arising in the next accounting period, and so on.

(2) Where, of an accounting period in which a loss has been sustained, part is before and part after the beginning of the 1st day of January, 1962, the loss shall be apportioned between the period up to and the period beginning on that date in proportion to the respective lengths of those periods, and so much of the loss as is apportioned to the period up to that date shall be disregarded for the purposes of subsection (1) of this section.

(3) In this section “business” means any trade or business or any undertaking of a similar character the profits whereof are profits to which Part V of the Finance Act, 1920 , applies.

(4) The purposes imported by the reference in subsection (3) of section 53 of the Finance Act, 1920 , to the purposes of Part V of that Act shall, notwithstanding subsection (5) of section 35 of this Act, not include the purposes of the foregoing subsections of this section.