Corporation Tax Act 2010 section 937L

Interpretation of references to economic losses and profits

Section 937L defines what is meant by "economic" losses and profits, and related terms, in the context of the risk transfer scheme rules.

• An "economic" loss or profit includes both unrealised and realised amounts, giving a true picture of the overall gain or loss in a period.
• The economic loss or profit "by the relevant group" means the combined result for all group members considered together.
• Where a scheme loss or profit is calculated under generally accepted accounting practice by reference to fluctuations over a longer period than a single accounting period, the group's related economic loss or profit is also computed over that longer period.
• A "pre-tax" economic loss or profit is one determined without regard to any gains or losses arising from the operation of the Corporation Tax Acts.