Corporation Tax Act 2009 section 607B

Exclusion of debit where relief allowed to another

Section 607B prevents double tax relief by stopping a company from claiming a debit under the derivative contracts rules where another person has already received relief for the same amount.

• Where section 607A allows a company to continue bringing debits into account on a derivative contract, section 607B restricts this to prevent the same loss being relieved twice.
• A debit cannot be claimed if another company has already brought the same amount into account as a debit for corporation tax purposes under the derivative contracts rules.
• A debit is also excluded if the amount has been used to reduce the assumed taxable total profits of another company under the controlled foreign companies regime in Part 9A of the Taxation (International and Other Provisions) Act 2010.
• Similarly, no debit may be recognised if the same amount is already allowable as a deduction for income tax purposes by any person.