C1C2Part 2Double taxation relief
Pt. 2 applied by 2010 c. 4, s. 269DL(6) (as inserted (with effect in accordance with Sch. 3 Pt. 3 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 1)
C2CHAPTER 2Double taxation relief by way of credit
Allocation of deductions etc to profits for purposes of section 42
55Current year's non-trading deficits on loan relationships
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) F1or 463B(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) F2, 459(1)(a) or 463B(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).
Pt. 2 modified by 1988 c. 1, Sch. 19ABA paras. 26-28 (as inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 34(3) (with Sch. 9 paras. 1-9, 22))