Finance Act 2020

3 (1) Section 269ZC (restriction on deductions from non-trading profits) is amended in accordance with this paragraph. U.K.

(2) In subsection (2), for “the relevant maximum” substitute “the difference between—

(a) the relevant maximum, and

(b) the amount of any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods).”

(3) For subsection (3) substitute—

“(3) In this section the “relevant maximum” means the sum of—

(a) 50% of the company's total relevant non-trading profits for the accounting period, and

(b) the amount of the company's total non-trading profits deductions allowance for the accounting period.

(3A) A company's “total non-trading profits deductions allowance” for the accounting period is the sum of—

(a) the company's non-trading income profits deductions allowance (see subsection (5)), and

(b) the company's chargeable gains deductions allowance (see section 269ZBA(5)).”

(4) In subsection (4), for “relevant non-trading profits” substitute “ total relevant non-trading profits ”.

(5) In subsection (5) for “ “non-trading profits deductions allowance””, in both places it occurs, substitute “ “non-trading income profits deductions allowance” ”.

(6) In subsection (6)—

(a) in the words before paragraph (a), for “ “non-trading profits deductions allowance”” substitute “ “non-trading income profits deductions allowance” ”, and

(b) for paragraph (b) substitute—

“(b) the total of any amounts specified for the period under—

(i) section 269ZB(7)(a) (trading profits deductions allowance),

(ii) section 269ZBA(5)(a) (chargeable gains deductions allowance), and

(iii) in the case of an insurance company, section 269ZFC(5)(a) (BLAGAB deductions allowance).”

(7) In subsection (8), for “relevant non-trading profits” substitute “ qualifying non-trading income profits and qualifying chargeable gains ”.