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Corporation Tax Act 2009
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Corporation Tax Act 2009, Section 457 is up to date with all changes known to be in force on or before 17 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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- Blanket amendment words substituted by S.I. 2011/1043 art. 3 4
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- s. 322(2A)(zb) inserted by 2016 c. 24 s. 73(5)
- s. 1058B(5)(ea) inserted by 2023 c. 20 Sch. para. 57
- s. 1094(2A)-(2C) inserted by 2012 c. 14 Sch. 3 para. 13(3)
- s. 1106(4A)-(4C) inserted by 2012 c. 14 Sch. 3 para. 14(3)
457Basic rule for deficits: carry forward to accounting periods after deficit periodU.K.
This section has no associated Explanatory Notes
(1)The basic rule is that the deficit must be carried forward and set off against non-trading profits of the company for accounting periods after the deficit period in accordance with subsection (3) and section 458 [F1(subject to subsection (2A))].
(2)That rule does not apply to so much of the deficit as—
(a)is surrendered as group relief under [F2Part 5 of CTA 2010], or
(b)is the subject of a claim by the company under section 459 (claim to set off deficit against profits of deficit period or earlier periods).
[F3(2A)If the company is a charity at the end of the deficit period, the deficit may not be carried forward and set off against non-trading profits (as described in subsection (1)) for an accounting period (and, accordingly, the deficit may not be surrendered as group relief under Part 5 of CTA 2010 for the purposes of subsection (2)(a)).]
(3)So much of the amount carried forward from the deficit period as is not the subject of a claim under section 458(1) must be set off against the non-trading profits of the company for the next accounting period after the deficit period.
(4)Those profits are reduced accordingly.
(5)In this Chapter “non-trading profits”, in relation to a company, means so much of the company's profits as does not consist of trading income for the purposes of [F4section 37 of CTA 2010 (deduction of trading losses from total] profits of the same or an earlier period).
Textual Amendments
F1Words in s. 457(1) inserted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 27(2)
F2Words in s. 457(2)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 618(2) (with Sch. 2)
F3S. 457(2A) inserted (with effect in accordance with Sch. 3 para. 30-36 of the amending Act) by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 27(3)
F4Words in s. 457(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 618(3) (with Sch. 2)
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