Corporation Tax Act 2009 section 456

Introduction to Chapter

Section 456 introduces the rules for dealing with non-trading deficits from loan relationships, explaining when these rules apply and signposting the various options available for using such deficits.

• The chapter applies where a company has a non-trading deficit from its loan relationships, but only if the accounting period began before 1 April 2017 or the company is a charity at the end of that period
• The terms "the deficit" and "the deficit period" are defined as referring to the specific deficit and accounting period in question
• The default treatment is that the deficit is carried forward to later accounting periods
• Alternative claims are available to set the deficit against other profits of the same or earlier periods, subject to specific rules and time limits