Trading losses to be set against profits before group relief

Orders of the Day — Finance Bill – in the House of Commons at 12:45 am on 10th July 1985.

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4.—(1) Where a company owned by a consortium—

  1. (a) has in any relevant accounting period incurred such a loss as is referred to in section 259(1) of the Taxes Act, and
  2. (b) has profits (of whatever description) of that accounting period against which that loss could be set off under subsection (2) of section 177 of that Act,
the amount of that loss which is available to any member of the consortium on a consortium claim shall be determined on the assumption that the company owned by the consortium has made a claim under that subsection requiring the loss to be so set off.

(2) Where the company referred to in sub-paragraph (1) above is a group/consortium company, the amount of the loss shall be determined under that sub-paragraph before any reduction is made under paragraph 2 above.