Corporation Tax Act 2010 section 269CF

Losses arising in company's start-up period

Section 269CF excludes losses arising during a banking company's start-up period from the restrictions on carried-forward loss relief that apply to banking companies, ensuring that expenses incurred while entering the banking sector are not subject to these restrictions.

• Trading losses, non-trading loan relationship deficits and management expenses carried forward from accounting periods ending within a company's start-up period are excluded from the definition of restricted "pre-2015" carried-forward losses
• Unrestricted start-up period losses are treated as having been used before any restricted post-start-up losses when determining what carried-forward losses remain at 1 April 2015
• Where an accounting period straddles the end of the start-up period, it is split into two notional periods, and losses are apportioned between them on a time basis or, if that would be unjust or unreasonable, on a just and reasonable basis
• The start-up period itself is defined in section 269CG and represents the first five years during which a company begins to carry on relevant regulated activity