Corporation Tax Act 2010 section 357QD

Restriction on losses carried forward where tax credit claimed

Section 357QD modifies the normal rules on restricting losses carried forward when a Northern Ireland company carrying on a qualifying trade claims a land remediation tax credit.

• The standard loss restriction rules in section 1158 of CTA 2009 are disapplied for Northern Ireland companies carrying on a qualifying trade, and replaced by the rules in this section
• Where the company claims a land remediation tax credit and has a Northern Ireland loss, that loss available for carry forward is reduced by the amount of Northern Ireland loss surrendered for the tax credit
• Where the company claims a land remediation tax credit and has a mainstream loss, that loss available for carry forward is similarly reduced by the amount of mainstream loss surrendered for the tax credit
• The surrendered loss amounts are defined by reference to the Northern Ireland or mainstream qualifying land remediation losses in respect of which the company claims its tax credit for the period