Corporation Tax Act 2009 section 330B

Exclusion of debit where relief allowed to another

Section 330B prevents double tax relief by blocking a company from claiming a loan relationship debit under section 330A where another person has already received tax relief for the same amount.

• A company cannot claim a debit under section 330A if another company has already brought the same amount into account as a loan relationship debit for corporation tax purposes.
• The debit is also blocked if the amount has been used to reduce the assumed taxable total profits of another company under the controlled foreign companies rules.
• Similarly, no debit can be claimed if the same amount is allowable as an income tax deduction by any person.
• The purpose of the rule is to ensure that section 330A does not give rise to a situation where two or more parties each obtain tax relief for the same underlying expense or loss.