Corporation Tax Act 2009 section 463

Profits available for relief under section 462

Section 463 defines which profits from earlier accounting periods are available to absorb a non-trading loan relationship deficit that a company claims to carry back under section 462.

• The profits available for carry-back relief are those chargeable under Part 5 (loan relationships) for accounting periods ending within the 12 months immediately before the deficit period, after deducting all prior reliefs
• Where an accounting period straddles the start of the 12-month look-back window, only a time-apportioned share of the profits from that period is available for relief
• Prior reliefs that must be given before the carry-back include: set-off of the deficit against total profits of the deficit period, relief for losses from earlier periods, charitable donations relief, and trade losses set against total profits
• For companies with investment business, additional prior reliefs include management expenses, charitable donations for business purposes, and plant and machinery capital allowances