Non-trading deficit on loan relationships
3(1)Section 83 is amended as follows.
(2)In subsection (2) (ways in which relief may be given on a claim in respect of the whole or any part of the deficit) after “the deficit”, where first occurring, insert “(to the extent that it is not surrendered as group relief by virtue of section 403 of the Taxes Act 1988)”.
(3)At the end of paragraph (a) of that subsection (claim to set off against other profits of the period) insert “or”.
(4)Paragraph (b) of that subsection (claim to treat as eligible for group relief) shall cease to have effect.
(5)Paragraph (d) of that subsection (claim to carry forward and set against non-trading profits of next accounting period) shall cease to have effect.
(6)For subsection (3) (any balance to be carried forward and treated as a deficit of the next accounting period) substitute—
“(3A)So much of the deficit for the deficit period as is not—
(a)surrendered as group relief by virtue of section 403 of the Taxes Act 1988, or
(b)treated in any of the ways specified in subsection (2) above,
shall be carried forward and set against non-trading profits of the company for succeeding accounting periods.”.
(7)Subsection (4) (provisions relating to amount carried forward and treated as deficit for next accounting period, which becomes of no further utility) shall cease to have effect.
(8)In subsection (9) (which introduces Schedule 8) for “subsection (2) above)” substitute “subsection (2)(a) or (c) above or where subsection (3A) above has effect)”.