Corporation Tax Act 2009 section 458

Claim to carry forward deficit to later accounting periods

Section 458 allows a company to elect to carry forward all or part of a non-trading loan relationship deficit to later accounting periods, rather than having it automatically set against non-trading profits in the next period.

• A company may claim to exclude a specified amount of its non-trading loan relationship deficit from being set against non-trading profits in the first accounting period after the deficit period
• Any such claim must be made within 2 years of the end of that first later accounting period
• Where the deficit amount cannot be set off against non-trading profits of the first later period, or is the subject of a carry-forward claim, it is treated as though it were a non-trading deficit arising in that first later period
• The carried-forward amount then rolls into the next period in line, and the same carry-forward rules apply again as if the first later period were the original deficit period