Section 389 | Claim to carry back deficit

(1)If the deficit exceeds the income and gains for the deficit period referred to in section 388(1), the company may make a claim for the whole or part of the excess (“the claim amount”)—

(a)to be carried back for up to 3 accounting periods ending within the permitted period, and

(b)to be set off against the available profits of the company in those periods in accordance with subsection (2).

(2)The claim amount reduces the company's available profits in the most recent accounting period of the company, before any remainder reduces those in the next most recent accounting period and then those in the next most recent accounting period.

(2A)If any of the claim amount is carried back in accordance with this section to an accounting period, the amount which is so carried back is to be left out of account for the purpose of applying section 93 of FA 2012 in the case of that period.^F1

(3)For the meaning of “available profits”, see section 390.

(4)In this section and that section “permitted period” means the period of 12 months immediately before the deficit period.

(5)A claim under this section must be made—

(a)within the period of 2 years after the end of the deficit period, or

(b)within such further period as an officer of Revenue and Customs allows.