Corporation Tax Act 2010 section 269CJ

Re-allocation of carried-forward loss allowance

Section 269CJ allows a building society that is part of a group to re-allocate carried-forward loss allowance among banking companies in the group, including itself, where a company needs more allowance than it currently holds and there is unused allowance elsewhere in the group.

• Where a banking company or the building society itself has more carried-forward losses than its current allowance covers, the building society can re-allocate unused allowance from other group members to that company
• Only allowance that has not already been designated against losses can be re-allocated, and allowance previously allocated to a company that has left the group is not available for re-allocation
• A revised statement of allocation must be submitted to HMRC no later than the date on which any affected company files or amends a tax return that includes a loss designation relying on the re-allocation, although an HMRC officer may extend this deadline
• The re-allocation is only effective if all procedural requirements are met, and once a revised statement has been submitted to HMRC it cannot be amended or withdrawn except through a further re-allocation under this section