Corporation Tax Act 2009 section 389

Claim to carry back deficit

Section 389 allows an insurance company to carry back any excess loan relationship deficit that cannot be relieved against income and gains in the deficit period itself, setting it against available profits of up to three earlier accounting periods.

• Where a deficit exceeds the income and gains of the deficit period, the company may claim to carry back all or part of the excess (the "claim amount") to up to three accounting periods ending within the 12 months immediately before the deficit period.
• The claim amount must be set against available profits of the most recent earlier period first, with any remaining balance applied to the next most recent period, and then the one before that.
• Any amount carried back under this section is disregarded when applying the minimum profits test under section 93 of Finance Act 2012 for the period to which it is carried back.
• The claim must be made within two years after the end of the deficit period, although an officer of Revenue and Customs may allow a longer period.