Section 461 | Claim to set off deficit against other profits for the deficit period

(1)This section applies if a claim is made under section 459(1)(a) for the whole or part of the deficit to be set off against profits for the deficit period.

(2)The general rule is that the amount to which the claim relates must be set off against the profits of the company for the deficit period which are identified in the claim.

(3)Those profits are reduced accordingly.

(4)The general rule is subject to subsections (5) and (7).

(5)Relief for any deficit incurred in a trade in an earlier accounting period must be given before relief under this section.

(6)But relief under this section must be given before relief is given against profits for the deficit period—

(a)under section 37 or 62(1) to (3) of CTA 2010 (deduction of losses from total profits for the same or earlier accounting periods), or

(b)as a result of a claim under section 459(1)(b) (carry-back) in respect of a deficit for a later period.

(7)No relief may be given under this section against ring fence profits of the company within the meaning of Part 8 of CTA 2010 (oil activities).