- Latest available (Revised)
- Point in Time (19/07/2011)
- Original (As enacted)
Version Superseded: 16/11/2017
Point in time view as at 19/07/2011.
There are currently no known outstanding effects for the Taxation (International and Other Provisions) Act 2010, Cross Heading: Allocation of deductions etc to profits for purposes of section 42.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
(1)Subsection (2) applies for the purposes of section 42 if in the accounting period there is any amount (“the deduction”) that for corporation tax purposes is deductible from, or otherwise allowable against, profits of more than one description.
(2)The company may allocate the deduction in such amounts, and to such of its profits for the period, as it thinks fit.
(1)Subsection (2) applies for the purposes of section 42 if an amount (“the deficit”) is carried forward to the period under section 457(1) of CTA 2009 (non-trading deficits on loan relationships set against profits of subsequent years).
(2)The deficit can be allocated only to the company's non-trading profits for the period, but the company may allocate the deficit to such of those profits, and in such amounts, as the company thinks fit.
(3)In this section “non-trading profits” has the meaning given by section 457(5) of CTA 2009.
(1)Subsection (2) applies for the purposes of section 42 if the company has at least one non-trading credit for the period that is eligible for double taxation relief.
(2)That much of the company's non-trading debits for the period as is given by the formula—
may be allocated by the company to such of its profits for the period, and in such amounts, as the company thinks fit, but this is subject to subsection (4).
(3)Subsection (4) applies for the purposes of section 42 if—
(a)the company has at least one non-trading credit for the period that is eligible for double taxation relief, and
(b)the company sets the whole or part of XS against profits of the period in pursuance of a current-year provision or claim.
(4)So much of the company's non-trading debits as is equal to that amount of XS must be allocated to the profits against which that amount of XS is set in pursuance of the current-year provision or claim.
(5)In this section, if the company has a non-trading deficit (“D”) on its loan relationships for the period—
CB is so much of D as is the subject of a carry-back claim,
CF is so much of D as is carried forward to a subsequent accounting period in accordance with a carry-forward provision,
GR is so much of D as is surrendered as group relief under section 99 of CTA 2010, and
if
(6)For the purposes of subsections (1) and (3), a non-trading credit relating to an item is “eligible for double taxation relief” if there is in respect of that item an amount of foreign tax for which, under the arrangements, credit is allowable against United Kingdom tax calculated by reference to that item.
(7)In this section—
“carry-back claim” means a claim—
under section 389(1) of CTA 2009 (insurance companies: carry-back, to earlier accounting periods, of non-trading deficit on loan relationships), or
under section 459(1)(b) of CTA 2009 (carry-back: other companies),
“carry-forward provision” means—
section 391 of CTA 2009 (insurance companies), or
section 457(1) of CTA 2009 (other companies),
“current-year provision or claim” means—
section 388(1) of CTA 2009 (insurance companies: non-trading deficit on loan relationships set against current year's profits), or
a claim under section 459(1)(a) of CTA 2009 (other companies: setting of deficit against current year's profits),
“non-trading credit” means a non-trading credit for the purposes of Part 5 of CTA 2009 (loan relationships),
“non-trading debit” means a non-trading debit for the purposes of that Part, and
“TNTD” is the total amount of the company's non-trading debits for the period.
(1)Subsection (5) applies for the purposes of section 42 if conditions A and B are met.
(2)Condition A is that the company—
(a)has no non-trading credits for the period, or
(b)has non-trading credits for the period but none of those credits is eligible for double taxation relief.
(3)For the purposes of subsection (2)(b), a non-trading credit relating to an item is “eligible for double taxation relief” if there is in respect of that item an amount of foreign tax for which, under the arrangements, credit is allowable against United Kingdom tax calculated by reference to that item.
(4)Condition B is that an amount (“the deficit”) is set against any of the company's profits for the period—
(a)under section 388(1) of CTA 2009 (insurance company's non-trading deficit on loan relationships set against current year's profits), or
(b)under section 459(1)(a) of CTA 2009 (other company's non-trading deficit on loan relationships set against current year's profits).
(5)The deficit can be allocated only to profits against which the deficit is set under section 388(1) or 459(1)(a) of CTA 2009.
(6)In this section “non-trading credit” means a non-trading credit for the purposes of Part 5 of CTA 2009 (loan relationships).
(1)Subsection (2) applies for the purposes of section 42 if the company has at least one non-trading credit for the period that is eligible for double taxation relief.
(2)That much of the company's non-trading debits for the period as is given by the formula—
may be allocated by the company to such of its profits for the period, and in such amounts, as the company thinks fit.
(3)In subsection (2)—
TNTD is the total amount of the company's non-trading debits for the period, and
CF is the amount (if any) carried forward to the next accounting period under section 753(3) of CTA 2009 (carry forward of non-trading loss so far as neither subject to a claim to set it against profits of current period nor surrendered by way of group relief).
(4)For the purposes of subsection (1), a non-trading credit relating to an item is “eligible for double taxation relief” if there is in respect of that item an amount of foreign tax for which, under the arrangements, credit is allowable against United Kingdom tax calculated by reference to that item.
(5)In this section—
“non-trading credit” means a non-trading credit for the purposes of Part 8 of CTA 2009 (intangible fixed assets), and
“non-trading debit” means a non-trading debit for the purposes of that Part.
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: