Introduction Equity holders Overview Section 105: Restriction on surrender of losses etc within section 99(1)(d) to (g)
372.This section sets out a special rule which applies only to “relevant amounts”. They are:
	qualifying charitable donations;
	a UK property business loss;
	management expenses; and
	a non-trading loss on intangible assets.
373.The section is based on sections 403 and 403ZE of ICTA.
374.Subsection (1) introduces the “relevant amounts” to which the section applies.The “relevant amounts” do not include the main reliefs (trading losses, excess capital allowances and non-trading loan relationships deficits), which may be surrendered even if the surrendering company has profits against which the main reliefs may be set.
375.Subsections (2) and (3) are the main rule: the relevant amounts are available only to the extent that they cannot be deducted from the surrendering company’s own profits.
376.Subsection (4) deals with the case where the reliefs are restricted. In that case, the subsection determines the make-up of the relief that is surrendered.
377.The rule in this section compares the amounts within section 99(1)(d) to (g) with the “surrendering company’s gross profits”. Subsection (5) defines “gross profits” for the purposes of this section.
378.Subsection (6) refers to one of the restrictions mentioned in section 403(4) of ICTA. The other restrictions are in sections 99(5) and 137(3)(e).