Taxes Consolidation Act 1997 section 158

Set-off of loss brought forward or terminal loss against franked investment income in the case of financial concerns

Section 158 (now repealed) allowed a financial concern receiving franked investment income to treat that income as trading income, so that brought-forward trading losses or terminal losses could be relieved against it.

• Available to companies in receipt of franked investment income, either instead of or in addition to a claim under section 157.
• The franked investment income covered by the claim was treated as trading income of the accounting period for the purposes of loss relief under section 396(1) or terminal loss relief under section 397.
• If a tax credit was paid out under this mechanism and the loss was later used against ordinary profits, the credit had to be repaid by way of an income tax assessment under Case IV of Schedule D.
• Deleted by section 41 of the Finance Act 2003 for accounting periods ending on or after 6 February 2003.