Section 388 — Corporation Tax Act 2009: Basic rule: deficit set off against income and gains of deficit period

Basic rule: deficit set off against income and gains of deficit period 388 1 The basic rule is that the deficit must be set off against any income and gains of the deficit period which are referable to BLAGAB.

2 The income and gains are reduced accordingly.

3 Any such reduction is made in accordance with step 4 in section 73 of FA 2012 (that is to say, before any deduction for the adjusted BLAGAB management expenses of the company for the deficit period) .