Section 269CA | Restriction on deductions for trading losses ^F1

(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 trading loss may not exceed 25% of the company's relevant trading profits for the accounting period.Section 269ZF contains provision for calculating a company's relevant trading profits for an accounting period (see ... subsection (1) of that section).^F2F3F4

(3)But subsection (2) does not apply in relation to a banking company for an accounting period where, in determining the company's relevant trading profits for the period, the amount given by step 1 in section 269ZF(3) is not greater than nil .^F5

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

(a)was made in a trade of the company in an accounting period ending before 1 April 2015, and

(b)is carried forward to the current accounting period under section 45 (carry forward of trade loss against subsequent trade profits).

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