Section 269ZC | Restriction on deductions from non-trading profits ^F1

From legislation.gov.uk

(1)This section has effect for determining the taxable total profits of a company for an accounting period.^F1

(2)The sum of any deductions made by the company for the accounting period under section 457(3) and 463H(5) of CTA 2009 (carry forward of non-trading deficits from loan relationships against subsequent non-trading profits) may not exceed the difference between—^F1F2

(a)the relevant maximum, and^F1F2

(b)the amount of any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods).^F1F2

But this is subject to subsection (8).

(3)In this section the “relevant maximum” means the sum of—^F1F3

(a)50% of the company’s total relevant non-trading profits for the accounting period, and^F1F3

(b)the amount of the company’s total non-trading profits deductions allowance for the accounting period.^F1F3

(3A)A company’s “total non-trading profits deductions allowance” for the accounting period is the sum of—^F1F3

(a)the company’s non-trading income profits deductions allowance (see subsection (5)), and^F1F3

(b)the company’s chargeable gains deductions allowance (see section 269ZBA(5)).^F1F3

(4)Section 269ZF contains provisions for determining a company's total relevant non-trading profits for an accounting period.^F1F4

(5)A company's “non-trading income profits deductions allowance” for an accounting period—^F1F5

(a)is so much of the company's deductions allowance for the period as is specified in the company's tax return as its non-trading income profits deductions allowance for the period, and^F1F5

(b)accordingly, is nil if no amount of the company's deductions allowance for the period is so specified.^F1

(6)An amount specified under subsection (5)(a) as a company's non-trading income profits deductions allowance for an accounting period may not exceed the difference between—^F1F6

(a)the amount of the company's deductions allowance for the period, and^F1

(b)the total of any amounts specified for the period under—^F1F7

(i)section 269ZB(7)(a) (trading profits deductions allowance),^F1F7

(ii)section 269ZBA(5)(a) (chargeable gains deductions allowance), and^F1F7

(iii)in the case of an insurance company, section 269ZFC(5)(a) (BLAGAB deductions allowance).^F1F7

(7)Repealed^F8F1

(8)Subsection (2) does not apply in relation to a company for an accounting period where, in determining the company's qualifying non-trading income profits and qualifying chargeable gains for the period, the amount given by step 1 in section 269ZF(3) is not greater than nil.^F1F9

Notes

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
Words in s. 269ZC(2) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(2), 42 (with Sch. 4 paras. 43-46)
F3
S. 269ZC(3)(3A) substituted for s. 269ZC(3) (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(3), 42 (with Sch. 4 paras. 43-46)
F4
Words in s. 269ZC(4) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(4), 42 (with Sch. 4 paras. 43-46)
F5
Words in s. 269ZC(5) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(5), 42 (with Sch. 4 paras. 43-46)
F6
Words in s. 269ZC(6) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(6)(a), 42 (with Sch. 4 paras. 43-46)
F7
S. 269ZC(6)(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. 3(6)(b), 42 (with Sch. 4 paras. 43-46)
F8
S. 269ZC(7) 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. 26, 42 (with Sch. 4 paras. 43-46)
F9
Words in s. 269ZC(8) substituted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 3(7), 42 (with Sch. 4 paras. 43-46)