Corporation Tax Act 2009 section 463H

Carry forward of unrelieved deficit against non-trading profits

Section 463H provides an alternative route for carrying forward unrelieved non-trading loan relationship deficits where the normal carry-forward against total profits under section 463G is unavailable, restricting relief to non-trading profits only.

• Where a company's investment business has become small or negligible, or where certain insurance company restrictions apply, the normal carry-forward of non-trading deficits against total profits is blocked — this section provides a fallback mechanism.
• The unrelieved deficit is carried forward to the next accounting period and must be set off against the company's non-trading profits (that is, profits excluding trading income) of that period, with those profits reduced accordingly.
• The company may claim, within two years of the end of the relevant period (or a longer period if HMRC allows), that all or part of the relief should not be given in that period — effectively preserving the deficit for later use.
• Any amount that cannot be relieved (because non-trading profits are insufficient) or that is the subject of such a claim continues to roll forward to the next period on the same basis, provided the company remains a company with investment business throughout each carry-forward period.