INTM215520 - Controlled Foreign Companies: before CTSA

Losses: pre-direction losses - interaction of ICTA88/SCH24/PARA9 and ICTA88/SCH24/PARA11

A claim under ICTA88/SCH24/PARA9 for an accounting period may have no effect. This happens if the Board makes a declaration under ICTA88/SCH24/PARA11 (3) - see INTM215250. The declaration may be for that or any previous accounting period.

In practice, the Inspector can give relief for any trading losses that the company might claim because the Inspector needs to work out the chargeable profits of every period after that for which the Board makes the declaration.

The Inspector may admit a claim under ICTA88/SCH24/PARA9 for an accounting period. If so, the Board does not need to make a declaration under ICTA88/SCH24/PARA11 (3) for any later period. This is because the Inspector will already have continuity when working out the capital allowances.

The Board cannot make a declaration under ICTA88/SCH24/PARA11 (3) for any accounting period ending before 5 April 1984. This is unlike a claim under ICTA88/SCH24/PARA9.