Corporation Tax Act 2009 section 1217MC

Terminal losses

Section 1217MC sets out how terminal losses arising when a company ceases a separate theatrical trade are treated, and the circumstances in which those losses can be transferred to another theatrical trade or surrendered to a group company.

• When a company ceases a separate theatrical trade and has unused losses that could otherwise have been carried forward, those losses are treated as "terminal losses" eligible for transfer
• The company may elect to transfer all or part of the terminal loss to another of its own separate theatrical trades, provided that other trade is still being carried on at the point of cessation
• Alternatively, the terminal loss (or part of it) may be surrendered to another company in the same group, provided that company is carrying on its own separate theatrical trade at the time of cessation
• Any loss deduction made under this section is excluded from the corporate loss restriction rules that normally cap the amount of carried-forward losses a company can set against trading profits