Taxation (International and Other Provisions) Act 2010 section 323

Stranded deficits in non-trading loan relationships: financing income

Section 323 dealt with stranded deficits arising from non-trading loan relationships and how they related to financing income under the former worldwide debt cap rules, but this section has been repealed and replaced by the corporate interest restriction regime.

• Section 323 was part of Part 7 of TIOPA 2010, which contained the worldwide debt cap rules governing how much tax relief UK groups could claim for financing costs
• The section specifically addressed situations where a company had a "stranded deficit" — an excess of non-trading debits over credits from loan relationships that could not be used against other income — and how such deficits interacted with the concept of financing income
• The entire Part 7 worldwide debt cap regime, including section 323, was repealed by Finance (No. 2) Act 2017 and replaced with the corporate interest restriction rules introduced by section 20 and Schedule 5 of that Act
• The repeal takes effect for periods of account of worldwide groups beginning on or after 1 April 2017, meaning the old rules may still be relevant for earlier periods