386. Trading losses.

Where in any accounting period1 a company carrying on a trade2 makes a loss in the trade3:

  1.  

    (1)     the company may make a claim for the loss to be deducted from the company's total profits4 of:

    1.  

      (a)     the accounting period in which the loss is made ('the loss-making period')5;

    2.  

      (b)     if the claim so requires, previous accounting periods so far as they fall (wholly or partly) within the period of 12 months ending immediately before the loss-making period begins6; and

  2.  

    (2)     to the extent no relief is given under these provisions7 the unrelieved loss is carried forward to subsequent