Section 463H — Corporation Tax Act 2009: Carry forward of unrelieved deficit against non-trading profits

Carry forward of unrelieved deficit against non-trading profits 463H 1 Subsections (4) to (8) apply if—

a section 463G would apply but for the fact that the company's investment business became small or negligible in the accounting period mentioned in subsection (3)(b) of that section, b section 463G would apply but for condition D in that section (no carry-forward to an excluded accounting period of a general insurance company), or c the company is a Solvency 2 insurance company and any amount of the deficit would be eligible to be carried forward under section 463G(6) were that amount not a shock loss (see section 463G(4), (12) and (13)).

2 Subsections (4) to (8) also apply if—

a subsections (6) to (10) of section 463G would apply but for the fact that the company's investment business became small or negligible in the accounting period mentioned in section 463I(1)(c)(ii), or b subsections (6) to (10) of section 463G would apply but for section 463I(1)(d) (no carry-forward under those subsections to an excluded accounting period of a general insurance company).

3 In this section the “unrelieved amount”—

a in a case within paragraph (a) or (b) of subsection (1), is to be interpreted in accordance with section 463G(2);

b in a case within paragraph (c) of subsection (1), means the amount mentioned in that paragraph;

c in a case within subsection (2), means so much of the deficit mentioned in section 463I(1)(a) as is not set off as mentioned in section 463I(1)(b)(i) or surrendered as mentioned in section 463I(1)(b)(ii).

4 The unrelieved amount is carried forward to the first accounting period (“period 2”) after—

a (in a case within subsection (1)) the deficit period, or b (in a case within subsection (2)) the period mentioned in section 463I(1)(a).

5 So much of the unrelieved amount as is not the subject of a claim under subsection (7) must be set off against the non-trading profits of the company for period 2.

6 Those profits are reduced accordingly.

7 The company may make a claim for relief under subsection (5) not to be given in period 2 for the unrelieved amount or so much of it as is specified in the claim.

8 A claim under subsection (7) is effective if, and only if, it is made—

a within the period of two years after the end of period 2, or b within such further period as an officer of Revenue and Customs may allow.

9 Subsection (10) applies if any amount is carried forward under subsection (4) to an accounting period (“the carry forward period”) and—

a cannot be set off under subsection (5) against non-trading profits of that period, or b is the subject of a claim under subsection (7).

10 If the company continues to be a company with investment business throughout the carry forward period, subsections (4) to (8) have effect as if—

a references to the unrelieved amount were to the amount mentioned in subsection (9),

and b references to—

i the deficit period, or ii the period mentioned in section 463I(1)(a), were to the carry forward period.

11 In this section “ non-trading profits ”, in relation to a company, means so much of the company's profits as does not consist of trading income for the purposes of section 37 of CTA 2010 (deduction of trading losses from total profits of the same or an earlier period).