I move amendment No. 25:
In page 33, line 2, to delete "land."." and substitute the following:
"land.
(20) (a) Notwithstanding subsections (1) and (6) of section 420 and section 421, where in an accounting period ending before 31 December 2009 the surrendering company has incurred a loss in a trade, the operations or activities of which consist of or include dealing in residential development land, then an amount of the loss, determined in accordance with paragraph (b), may not be set off for the purposes of corporation tax against the total profits of the claimant company for its corresponding accounting period.
(b) The amount determined in accordance with this paragraph in relation to an accounting period is an amount equal to—
(i) where the accounting period ends on or before 31 December 2008, the lesser of—
(I) the amount of the loss, and
(II) the amount of the loss which relates to dealing in residential development land,
and
(ii) where the accounting period begins before 1 January 2009 and ends after that date, the lesser of—
(I) the amount of the loss, and
(II) the amount of the loss which relates to dealing in residential development land,
incurred in the period beginning when the accounting period begins and ending on 31 December 2008.
(21) (a) Where in any accounting period the surrendering company has incurred a loss in a trade, the operations and activities of which consist of or include dealing in residential development land, and an amount of the loss (hereinafter in this section referred to as the ’restricted loss’) may not be set off for the purposes of corporation tax against the total profits of the claimant company for its corresponding accounting period by virtue of subsection (20), then the corporation tax (if any) of the claimant company which is referable to dealing in residential development land for its corresponding accounting period may be reduced by 20 per cent of the restricted loss for that period.
(b) Where for any accounting period a company claims relief under this subsection, the surrendering company shall be treated as having surrendered, and the claimant company shall be treated as having claimed relief for, trading losses of an amount determined by the formula—
V x 100
20
where—
V is the amount by which the relevant corporation tax payable for the accounting period is reduced by virtue of paragraph (a).
(22) (a) Where in any accounting period the surrendering company has incurred a loss in a trade, the operations and activities of which consist of or include dealing in residential development land, the restricted loss as reduced by any amount treated as relieved by subsection (21)(b), may be set off for the purposes of corporation tax against—
(i) income specified in section 21A(4)(b),
(ii) relevant trading income,
(iii) income to which section 21A(3) does not apply by virtue of section 21B, and
(iv) profits attributable to chargeable gains, of the claimant company for its corresponding accounting period as reduced by any amounts allowed as deductions against that income under section 243A or set off against that income under section 396A.
(b) Paragraph (a) shall not apply—
(i) to so much of a loss as is excluded from section 396(2) by section 396 (4) or 663, or
(ii) so as to reduce the profits of a claimant company which carries on life business (within the meaning of section 706) by an amount greater than the amount of such profits (before a set off under this subsection) computed in accordance with Case I of Schedule D and section 710(1).
(23) Group relief allowed under subsection (22) shall reduce the income from a trade of the claimant company for an accounting period—
(a) before relief granted under section 397 in respect of a loss incurred in a succeeding accounting period or periods, and
(b) after the relief granted under section 396 in respect of a loss incurred in a preceding accounting period or periods.
(24) For the purposes of subsections (21) and (22), in the case of a claim made by a company as a member of a consortium only a fraction of a restricted loss may be set off, and that fraction shall be equal to that member's share in the consortium, subject to any further reduction under section 422(2).
(25) Where in any accounting period the surrendering company has incurred a loss in a trade the operations or activities of which consists of or includes dealing in residential development land, and the restricted loss is greater than an amount equal to the aggregate of the amounts which could, if timely claims had been made for such set off, have been set off in respect of that loss for the purposes of corporation tax against—
(a) the profits of the company in accordance with subsection (6), or
(b) profits of any other company in accordance with subsections (21) and (22),
the claimant company may claim relief under subsection (26) for its corresponding accounting period in respect of the amount (hereinafter in this section referred to as the 'relievable loss') by which the unrelieved loss is greater than that aggregate.
(26) (a) Where for any accounting period a company claims relief under subsection (25) in respect of a relievable loss, the relevant corporation tax of the company for the accounting period shall be reduced by an amount equal to 20 per cent of that loss.
(b) Where for any accounting period a company claims relief under this section in respect of any relievable loss, the surrendering company shall be treated as having surrendered, and the claimant company shall be treated as having claimed relief for, trading losses of an amount determined by the formula-
V x 100
20
where—
W is the amount by which the relevant corporation tax payable for the accounting period is reduced by virtue of paragraph (a).
(27) Chapter 5 of Part 12 shall apply as if subsections (20) to (26) were contained in that Chapter.
(28) Subsections (20) to (27) shall apply in any case where a claim for group relief is made on or after 7 April 2009 in respect of a loss in a trade, the operations or activities of which consist of or include dealing in residential development land.".".
This amendment provides for similar treatment for losses arising from dealing in residential development land set sideways under group relief provisions to that for such losses set sideways against other profits of the company itself. It provides that where losses from dealing in residential land are surrendered to a company within the same group and are claimed against profits from dealing in residential land or other profits chargeable to tax at the 25% rate of corporation tax, the relief will be given on a value basis. The provision will apply to losses incurred before 1 January 2009 where a claim for set off is received on or after 7 April 2009.