Taxes Consolidation Act 1997 section 835AV

Carry forward

Section 835AV allows an entity to carry forward a deduction that has been denied under the anti-tax avoidance rules and set it off against dual inclusion income arising in later tax periods.

• Where a deduction has been denied under Part 35D (the "denied amount"), the entity may claim to have that amount set off against dual inclusion income in succeeding tax periods.
• The set-off is made for the purposes of domestic tax only.
• Amounts carried forward must be relieved against the profits or gains of an earlier tax period before those of a later tax period, ensuring relief is claimed at the earliest possible opportunity.
• The provision ensures that denied deductions are not permanently lost but can be recovered when matching dual inclusion income arises in a subsequent period.