Corporation Tax Act, 1976
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Relief in respect of unrelieved losses and capital allowances carried forward from the year 1975-76. |
182.—(1) In this section— | |
“relevant amount” means, in relation to a company, the aggregate of the following amounts— | ||
(a) such part of any loss, including any amount to be treated as a loss under section 316 of the Income Tax Act, 1967 (amount of assessment under section 434 of the Income Tax Act, 1967 , to be allowed as a loss for certain purposes), incurred by the company in a trade before the date on which the company comes within the charge to corporation tax in respect of the trade and which, but for this Act, could be carried forward to the year 1976-77 under section 309 of the Income Tax Act, 1967 (right to carry forward losses to future years), and | ||
(b) such part of any capital allowance to which the company which carries on the trade was entitled in charging the profits or gains of the trade for years prior to the year 1976-77 and to which effect has not been given by way of relief before that year; | ||
“relevant corporation tax” for an accounting period means the corporation tax which, apart from sections 58 (basis of relief from corporation tax for export profits), 184 and this section, is chargeable for the accounting period exclusive of the corporation tax charged on the company's chargeable gains for the accounting period. | ||
(2) Relief, as provided in subsection (3), shall be allowed in respect of a relevant amount against corporation tax payable by the company and such relief shall be given as far as possible from the tax payable for the first accounting period for which the company is within the charge to corporation tax in respect of the trade and, in so far as it cannot be so given, from the tax payable for the next accounting period and so on. | ||
(3) The relief for an accounting period shall be an amount calculated by applying to that part of the relevant amount in respect of which relief from tax has not been allowed a rate equal to the standard rate for the year of assessment in which the accounting period ends: | ||
Provided that— | ||
(a) the amount to which the said rate is applied shall not exceed the amount of income from the trade which is included in chargeable profits for the accounting period reduced by the amount, if any, which is included in charges on income paid by the company in the accounting period in respect of payments made wholly and exclusively for the purposes of the trade; | ||
(b) where the corporation tax payable by the company for an accounting period is reduced by virtue of a claim under Part IV (Profits from Export of Certain Goods), the relief to be given under this section for the accounting period shall be reduced in the same proportion as the corporation tax payable by the company for the accounting period so far as it is attributable to the income from the trade is so reduced; and the corporation tax attributable to the income from the trade shall be an amount equal to the same proportion of the relevant corporation tax for the accounting period as the income from the trade for the accounting period bears to the total income brought into charge to corporation tax; | ||
(c) the amount of a reduction made for an accounting period under paragraph (b) of this proviso shall, for the purposes of section 64 (distributions out of export profits), be deemed to be a reduction of the amount of relief allowed under section 58. | ||
(4) Relief under this section shall not be allowed against corporation tax payable by a company which by virtue of agreements between the Government and the United Kingdom Government in respect of double income tax was entitled to exemption from income tax for the year 1975-76 in respect of income arising in the State. |