Corporation Tax Act 2010

[F1 269ZC Restriction on deductions from non-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 under section 457(3) and 463H(5) of CTA 2009 (carry forward of non-trading deficits from loan relationships against subsequent non-trading profits) may not exceed [F2 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).]

But this is subject to subsection (8).

[F3 (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) Section 269ZF contains provisions for determining a company's [F4 total relevant non-trading profits] for an accounting period.

(5) A company's [F5 “non-trading income 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 [F5 non-trading income 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.

(6) An amount specified under subsection (5)(a) as a company's [F6 non-trading income 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

[F7 (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).]

F8 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) Subsection (2) does not apply in relation to a company for an accounting period where, in determining the company's [F9 qualifying non-trading income profits and qualifying chargeable gains] for the period, 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 Words in s. 269ZC(2) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(2), 42 (with Sch. 4 paras. 43-46)

F3 S. 269ZC(3)(3A) substituted for s. 269ZC(3) (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(3), 42 (with Sch. 4 paras. 43-46)

F4 Words in s. 269ZC(4) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(4), 42 (with Sch. 4 paras. 43-46)

F5 Words in s. 269ZC(5) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(5), 42 (with Sch. 4 paras. 43-46)

F6 Words in s. 269ZC(6) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(6)(a), 42 (with Sch. 4 paras. 43-46)

F7 S. 269ZC(6)(b) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(6)(b), 42 (with Sch. 4 paras. 43-46)

F8 S. 269ZC(7) omitted (with effect in relation to accounting periods beginning on or after 1.4.2020) by virtue of Finance Act 2020 (c. 14), Sch. 4 paras. 26, 42 (with Sch. 4 paras. 43-46)

F9 Words in s. 269ZC(8) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(7), 42 (with Sch. 4 paras. 43-46)