Taxes Consolidation Act 1997 Schedule 17 paragraph 3

Trading losses

Paragraph 3 of Schedule 17 prevents trading losses incurred by a trustee savings bank, while under ministerial control, from being carried forward or transferred to a successor company.

• Trading losses incurred by a trustee savings bank while it was controlled by the Minister for Finance cannot be carried forward under the normal loss relief rules in section 396(1).
• Where the bank itself transitions from ministerial control to independent ownership (for example, through a share sale), it cannot claim relief for losses from the period when it was controlled.
• Where a new successor company is created and the bank's assets and liabilities are transferred to it, the successor company cannot claim relief for losses incurred by the original controlled bank.
• The two separate restrictions cover the two possible forms of reorganisation under the Trustee Savings Banks Act 1989: a sale of shares by the Minister, or the creation of a new company with a transfer of assets and liabilities.