Corporation Tax Act 2009 section 461

Claim to set off deficit against other profits for the deficit period

Section 461 explains how a non-trading loan relationship deficit is set off against a company's profits for the same accounting period in which the deficit arose, including the ordering rules that determine priority against other reliefs.

• When a company claims to set off a non-trading loan relationship deficit against profits of the deficit period, the deficit is applied against the specific profits identified in the claim, and those profits are reduced accordingly.
• Relief for any trade losses from an earlier accounting period must be given before this deficit relief is applied, so earlier trade loss relief takes priority.
• However, this deficit relief must be given before relief for trade losses or UK property business losses under CTA 2010, and before any carry-back of a non-trading deficit from a later period.
• The deficit cannot be set off against ring fence profits from oil activities, which are protected under Part 8 of CTA 2010.