Section 269ZB Restriction on deductions from trading profitsF1C1C2C3C4C5C6C7C8C9C10C11C12C13C14
United Kingdom
This section has effect for determining the taxable total profits of a company for an accounting period.
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).
The following deductions fall within this subsection—
any deductions under section 45(4)(b) or 45B;
any deduction under section 303B(4) or 303D(5), so far as it is a restricted deduction.
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).
In this section the “relevant maximum” means the sum of—
50% of the company's relevant trading profits for the accounting period, and
the company's trading profits deductions allowance for the accounting period.
Section 269ZF contains provision for determining a company's relevant trading profits for an accounting period.
A company's “trading profits deductions allowance” for an accounting period—
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
accordingly, is nil if no amount of the company's deductions allowance for the period is so specified.
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—
the amount of the company's deductions allowance for the period, and
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
Annotations
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 relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 25(2), 42 (with Sch. 4 paras. 43-46)
- F3
S. 269ZB(9) 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. 25(3), 42 (with Sch. 4 paras. 43-46)
Modifications
- 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))
Notes on Part 7ZA
Modifications
- C1
Pt. 7ZA modified (retrospective to 29.10.2018) by Finance Act 2020 (c. 14), Sch. 4 para. 46
- C2
Pt. 7ZA modified by 1992 c. 12, Sch. 7A para. 6(1C) (as inserted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 18(4), 42 (with Sch. 4 paras. 43-46))
- C3
Pt. 7ZA applied (with modifications) (with effect in accordance with Sch. 4 para. 43(1) of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 para. 44(4)
- C4
Pt. 7ZA applied (with modifications) (with application in accordance with Sch. 4 para. 45(1)(2) of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 para. 45(4)
- C5
Pt. 7ZA disapplied (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 21