Corporation Tax Act 2010 section 269DC

Meaning of "non-banking or pre-2016 loss relief"

Section 269DC defines "non-banking or pre-2016 loss relief" for the purposes of calculating the banking surcharge, identifying which carried-forward losses qualify as relief that can be deducted before the surcharge is applied.

• Non-banking or pre-2016 loss relief is the total of all carried-forward losses deducted in calculating taxable total profits, where those losses originated in periods when the company was not a banking company or in accounting periods ending before 1 January 2016.
• The types of carried-forward loss covered include trading losses, non-trading loan relationship deficits, management expenses, UK and overseas property losses, excess capital allowances on special leasing, miscellaneous losses, capital losses, and used amounts relating to non-trading losses on intangible fixed assets.
• A company has a non-banking or pre-2016 non-trading loss on intangible fixed assets if it incurred such a loss in its most recent non-banking accounting period (if it has had one on or after 1 January 2016) or, failing that, in its last accounting period ending before 1 January 2016.
• The "used amount" in respect of a non-trading loss on intangible fixed assets is calculated by comparing the remaining carried-forward debit against the non-trading credits and any set-off of non-trading losses against total profits for the period — the used amount is the lower of these two figures.