Section 386 CTA 2010

Section 386 extends the period over which the benefit of the expense can be utilized in certain circumstances.

It comes into play when:

the expense produces a loss in the ‘new’ accounting period (period 1) that follows the change of ownership; and

that loss, or part of it, is not utilized and therefore becomes a loss that is carried forward into the 'subsequent accounting period (period 2 etc); and

The new period starts within 5 years of the relevant day and does not start as a result of another qualifying change of ownership.

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