Section 301 — Corporation Tax Act 2009: Calculation of non-trading profits and deficits from loan relationships: non-trading credits and debits

Calculation of non-trading profits and deficits from loan relationships: non-trading credits and debits 301 1 Whether a company has non-trading profits or a non-trading deficit from its loan relationships for an accounting period is determined in accordance with subsections (4) to (7) , using the non-trading credits and non-trading debits given by this Part for the accounting period. 1A In the case of a non-UK resident company, subsections (4) to (7) need to be read with section 5(3), (3A)(b) and (3B)(b) (territorial scope of charge to corporation tax).

2 In this Part—

a “ non-trading credits ” means credits for any accounting period in respect of a company's loan relationships that are not brought into account under section 297(2),

and b “ non-trading debits ” means debits for any accounting period in respect of a company's loan relationships that are not brought into account under section 297(3).

3 But see also—

a section 330 (debits in respect of pre-trading expenditure),

and b section 482(1) (under which credits or debits to be brought into account under Chapter 2 of Part 6 (relevant non-lending relationships) are treated as non-trading credits or debits).

4 A company has non-trading profits for an accounting period from its loan relationships if the non-trading credits for the period exceed the non-trading debits for the period or there are no such debits.

5 The non-trading profits are equal to those credits, less any such debits.

6 A company has a non-trading deficit for an accounting period from its loan relationships if the non-trading debits for the period exceed the non-trading credits for the period or there are no such credits.

7 The non-trading deficit is equal to those debits, less any such credits.