Corporation Tax Act 2009 section 390

Meaning of "available profits"

Section 390 defines "available profits" for the purposes of carrying back a BLAGAB non-trading loan relationships deficit under section 389, explaining how to calculate the amount of profit in an earlier accounting period against which a deficit can be set.

• Available profits are the company's BLAGAB non-trading loan relationships profits for the period, reduced by the unused part of relevant deductions (management expenses and qualifying charitable donations referable to BLAGAB)
• Where an accounting period straddles the start of the permitted carry-back period, only the proportion of available profits falling within the permitted period may be used
• The unused part of relevant deductions is found by a three-step process: total up deductions, determine how much of those deductions could still be used if the BLAGAB non-trading loan relationships profits did not exist, and subtract the second figure from the first
• When calculating adjusted BLAGAB management expenses for a carry-back claim, the current claim and any claims relating to deficits of later periods are ignored, but adjustments for other amounts carried back to the same period under the Corporation Tax Acts are taken into account