Section 269CB Restriction on deductions for non-trading deficits from loan relationshipsF1

United Kingdom

(1)

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

(2)

Any deduction made by the company for the accounting period in respect of a pre-2015 carried-forward non-trading deficit may not exceed F225% of the company's F3total relevant non-trading profits for the accounting period.

Section F4269ZF contains provision for calculating a company's total relevant non-trading profits for an accounting period (see F5subsection (2B) of that section).

(3)

But subsection (2) does not apply F6in relation to a banking company for an accounting period where, in determining the company's F7total relevant non-trading profits for the period, the amount given by step 1 in section 269ZF(3) is not greater than nil.

(4)

In this Chapter “pre-2015 carried-forward non-trading deficit”, in relation to a company and an accounting period (“the current accounting period”), means a non-trading deficit—

(a)

which the company had from its loan relationships under section 301(6) of CTA 2009 for an accounting period ending before 1 April 2015, and

(b)

which is carried forward under section 457 of that Act (carry forward of deficits to accounting periods after deficit period) to be set off against non-trading profits of the current accounting period.

(5)

In subsection (4) “non-trading profits” has the same meaning as in section 457 of CTA 2009.

(6)

See also sections 269CE to 269CH (losses to which restrictions do not apply).

Annotations

Textual amendments

F1: Pt. 7A inserted (with effect in accordance with Sch. 2 para. 7-9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 2 para. 1
F2: Word in s. 269CB(2) substituted (with effect in accordance with s. 57(5) of the amending Act) by Finance Act 2016 (c. 24), s. 57(3)
F3: Words in s. 269CB(2) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020 of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 paras. 37(2)(a), 42 (with Sch. 4 paras. 43-46)
F4: Word in s. 269CB(2) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 19(2)(a)
F5: Words in s. 269CB(2) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020 of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 paras. 37(2)(b), 42 (with Sch. 4 paras. 43-46)
F6: Words in s. 269CB(3) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 19(3)
F7: Words in s. 269CB(3) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020 of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 paras. 37(3), 42 (with Sch. 4 paras. 43-46)