Corporation Tax Act 2010 section 269DCA

Meaning of "non-banking transferred-in loss relief"

Section 269DCA defines what "non-banking transferred-in loss relief" means for the purposes of calculating the banking surcharge, and explains the related concepts of a "non-banking loss transfer" and a "non-banking company".

• Non-banking transferred-in loss relief is the total of any capital loss deductions used in calculating a banking company's taxable total profits, where those losses originated from a non-banking loss transfer.
• A non-banking loss transfer occurs when a non-banking company within the same group transfers all or part of an allowable capital loss to a banking company using the group reallocation election mechanism.
• A non-banking company is one that is not classified as a banking company at the point when the transferred loss is treated as accruing to the receiving company under the election.
• These definitions are relevant to the banking surcharge calculation, where such transferred-in losses may receive different treatment from losses that arise directly within a banking company.