CTM07030 | Transfer of Deductions – Highly Likely Disallowed Deductions

From HM Revenue & Customs · Company Taxation Manual

A deductible amount which would be disallowed for the purposes of these transfer of deduction rules includes:

an expense of a trade
an expense of a property business
an expense of management of a company’s investment business within the meaning of section 1219 of CTA 2009
a non-trading debit within the meaning of Parts 5 and 6 of CTA 2009 (loan relationships and derivative contracts); and
a non-trading debit within the meaning of Part 8 of CTA 2009 (intangible fixed assets).

But does not include:

Any amount which has been taken into account in determining the “relevant tax written down value” within the meaning of CAA01/Part 2/Chapter 16A (CA27850); or
If the relevant day is on or after 1 April 2014, an amount treated as an expense of the trade by being a research and development expense by virtue of CAA01/S450(a) (CA60000)Highly Likely
When determining if a deduction is highly likely, factors to take into account include any relevant arrangements made on or before the relevant day, any relevant events on or before that day.