Section 371SKA | Restrictions on certain deductions: deductions allowances ^F1F2

(1)This section applies for the purposes of—

(a)applying Part 7ZA of CTA 2010 (restrictions on obtaining certain deductions), and

(b)applying any provision of Part 7ZA of CTA 2010 for the purposes of Part 7A of that Act (restrictions on obtaining certain deductions: banking companies).

(2)Assume that each of the following is nil—

(a)the CFC's deductions allowance for the relevant accounting period,

(b)the CFC's trading profits deductions allowance for the relevant accounting period, and

(c)the CFC's non-trading profits deductions allowance for the relevant accounting period.

(3)But if section 269ZX of CTA 2010 (increase of deductions allowance in connection with onerous or impaired leases) applies in relation to the relevant accounting period, the reference in subsection (2) to “nil” is to be read as a reference to an amount equal to the increase provided for by subsection (3) of that section.^F3