HC Deb 28 March 1996 vol 274 cc1210-1

Amendments made: No. 35, in page 234, line 35, leave out 'sub-paragraph (5) above' and insert 'this paragraph'.

No. 36, in page 234, line 51, leave out

`the company's expenses of management deducted'

and insert

`any deductions'.

No. 37, in page 235, line 7, at end insert—

`(10A) In sub-paragraph (10) above, the references, in relation to a claim under sub-paragraph (3) above ("the relevant claim"), to deductions by virtue of section 76 of the Taxes Act 1988 for a setoff period are references to the deductions by way of management expenses that would have fallen to be made by virtue of that section for that period if— (a) no account were taken of either—

  1. (i) the relevant claim; or
  2. (ii) any claim under sub-paragraph (3) above relating to a deficit for an accounting period after the deficit period;
but (b) there were made all such adjustments required by virtue of any sum having been carried back to that set-off period—
  1. (i) under the Corporation Tax Acts, but
  2. (ii) otherwise than in pursuance of the relevant claim or of any other such claim as is mentioned in paragraph (a) above.
 (10B) Where—
  1. (a) in pursuance of a claim under sub-paragraph (3) above any amount is set-off against the eligible profit of a company for any set-off period, and
  2. (b) there is a section 76(5) amount for that period which is attributable to that claim,

that section 76(5) amount shall not be carried forward by virtue of section 75(3) of the Taxes Act 1988 but, if that set-off period is the first or second set-off period, sub-paragraph (10C) below shall apply to that amount instead.

(10C) Where this sub-paragraph applies to a section 76(5) amount for any set-off period, the amount available in accordance with sub-paragraph (5) above to be carried back from that set-off period to be set off against eligible profits of previous set-off periods (or, as the case may be, against the eligible profit of the previous set-off period) shall be treated as increased by an amount equal to the amount to which this sub-paragraph applies.

(10D) In relation to any claim under sub-paragraph (3) above, the amount which for any set-off period is, for the purposes of this paragraph, to be taken to be the section 76(5) amount attributable to that claim is the amount (if any) by which the amount specified in paragraph (a) below is exceeded by the amount specified in paragraph (b) below, that is to say—

  1. (a) the amount that would have fallen to be carried forward by virtue of section 75(3) of the Taxes Act 1988 if the claim had not been made; and
  2. (b) the amount which, after the making of the claim, would have fallen to be carried forward to a subsequent period by virtue of section 75(3) of that Act if sub-paragraphs (10B) and (10C) above, so far as they relate to that claim, were to be disregarded.'.—[Mr. Jack.]

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