Corporation Tax Act 2010 section 433A

Restrictions not applying to the restricted loss amount

Section 433A provides that deductions made in respect of the restricted loss amount are excluded from the corporate loss restriction rules that cap the use of carried-forward losses against trading profits and total profits.

• Carried-forward trade loss deductions relating to the restricted loss amount are ignored when calculating the cap on deductions from trading profits.
• UK property business loss deductions relating to the restricted loss amount are ignored when calculating the cap on deductions from total profits.
• This carve-out ensures the restricted loss amount is not caught twice — once by the insurance company rules and again by the general corporate loss restriction.
• The exemption applies to both pre- and post-1 April 2017 trade loss carry-forward rules and to both standard and cessation-related property loss relief.