Corporation Tax Act 2010

[F1 269ZB Restriction on deductions from trading profits U.K.

(1) This section has effect for determining the taxable total profits of a company for an accounting period.

(2) The sum of any deductions made by the company for the accounting period which fall within subsection (3) may not exceed the relevant maximum.

But this is subject to subsection (10).

(3) The following deductions fall within this subsection—

(a) any deductions under section 45(4)(b) or 45B;

(b) any deduction under section 303B(4) or 303D(5), so far as it is a restricted deduction.

(4) For the purposes of this section a deduction under section 303B(4) or 303D(5) is a “restricted deduction” so far as it would not be available but for section 304(5) (reduction of income derived from related activities).

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

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

(b) the company's trading profits deductions allowance for the accounting period.

(6) Section 269ZF contains provision for determining a company's relevant trading profits for an accounting period.

(7) A company's “trading profits deductions allowance” for an accounting period—

(a) is so much of the company's deductions allowance for the period as is specified in the company's tax return as its trading profits deductions allowance for the period, and

(b) accordingly, is nil if no amount of the company's deductions allowance for the period is so specified.

(8) An amount specified under subsection (7)(a) as a company's trading profits deductions allowance for an accounting period may not exceed the difference between—

(a) the amount of the company's deductions allowance for the period, and

[F2 (b) any amount specified for the period under section 269ZC(5)(a) (non-trading profits deductions allowance).]

(9) A company's “deductions allowance” for an accounting period is to be determined in accordance with section 269ZR where, at any time in that period—

(a) the company is a member of a group (see section 269ZZB), and

(b) one or more other companies within the charge to corporation tax are members of that group.

Otherwise, a company's “deductions allowance” for an accounting period is to be determined in accordance with section 269ZW.

(10) Subsection (2) does not apply in relation to a company for an accounting period where, in determining the company's relevant trading profits, the amount given by step 1 in section 269ZF(3) is not greater than nil.]

Textual Amendments

F1 Pt. 7ZA inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 16

F2 S. 269ZB(8)(b) substituted (with effect in accordance with Sch. 10 para. 32 of the amending Act) by Finance Act 2019 (c. 1), Sch. 10 para. 4

Modifications etc. (not altering text)

C1 S. 269ZB modified by 2009 c. 4, s. 1209(3) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 28(3))

C2 S. 269ZB modified by 2009 c. 4, s. 1210(5A) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 29(6))

C3 S. 269ZB modified by 2009 c. 4, s. 1211(7A) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 30(5))

C4 S. 269ZB modified by 2009 c. 4, s. 1216DA(3) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 32(3))

C5 S. 269ZB modified by 2009 c. 4, s. 1216DB(5A) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 33(6))

C6 S. 269ZB modified by 2009 c. 4, s. 1216DC(7A) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 34(5))

C7 S. 269ZB modified by 2009 c. 4, s. 1217DA(3) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 36(3))

C8 S. 269ZB modified by 2009 c. 4, s. 1217DB(5A) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 37(6))

C9 S. 269ZB modified by 2009 c. 4, s. 1217DC(7A) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 38(5))

C10 S. 269ZB modified by 2009 c. 4, s. 1217MA(3) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 40(4))

C11 S. 269ZB modified by 2009 c. 4, s. 1217MC(9) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 42(5))

C12 S. 269ZB modified by 2009 c. 4, s. 1217SA(3) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 44(4))

C13 S. 269ZB modified by 2009 c. 4, s. 1217SC(9) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 46(5))

C14 S. 269ZB modified by 2009 c. 4, s. 1218ZDA(3) (as inserted (for specified purposes and with effect in accordance with Sch. 6 paras. 20, 21(1)(a) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 6 para. 1 (with Sch. 6 para. 21(3))