390Meaning of “available profits”U.K.
(1)For the purposes of section 389 the available profits of the company for an accounting period are its BLAGAB non-trading loan relationships profits for the period (see subsection (4)), less the unused part of the relevant deductions for the period (see subsection (5)).
(2)If an accounting period ending within the permitted period begins before it, only a part of the amount which would otherwise be the available profit for that accounting period is available profit.
(3)That part is so much as is proportionate to the part of the accounting period in the permitted period.
(4)References in this section to a company's BLAGAB non-trading loan relationships profits for an accounting period are references to the amount (if any) [F1of the BLAGAB credits in respect of the company's loan relationships that count as income for the purposes of the I - E rules for that period (as determined by section 88(3) and (4) of FA 2012)].
(5)The unused part of the relevant deductions for an accounting period is found as follows.
Step 1
Add together—
(a)[F2the amount for the purposes of section 73 of FA 2012 of the adjusted BLAGAB management expenses of the company for the period], and
(b)so much of the sum of the deductions made in the case of the company in respect of [F3qualifying charitable donations] for that period as is [F4referable to BLAGAB].
Step 2
Add together—
[F5(a) so much of the amount for the purposes of section 73 of FA 2012 of the adjusted BLAGAB management expenses of the company for the period as, on the assumption that the company had no BLAGAB non-trading loan relationships profits for the period, could be subtracted at step 6 under that section without producing a negative amount, and]
(b)the total amounts [F6referable to BLAGAB] which could be applied for the period in making deductions in respect of [F7qualifying charitable donations] if those profits were disregarded.
Step 3
Subtract the amount found at Step 2 from the amount found at Step 1.
The result is the unused part of the relevant deductions for the accounting period.
[F8(6)In the case of any claim under section 389, references in subsection (5) to the amount for the purposes of section 73 of FA 2012 of the adjusted BLAGAB management expenses of the company for the period are references to that amount as determined on the assumptions in subsections (7) and (8).]
(7)The first assumption is that no account is taken of—
(a)that claim, or
(b)any other claim under section 389 relating to a deficit for an accounting period after the deficit period.
(8)The second assumption is that all such adjustments are made as are required as a result of any sum having been carried back under the Corporation Tax Acts to the accounting period mentioned in subsection (5), otherwise than as a result of—
(a)the claim mentioned in subsection (6), or
(b)any such other claim as is mentioned in subsection (7)(b).
Textual Amendments
F1Words in s. 390(4) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 154(2)
F2Words in s. 390(5) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 154(3)(a)
F3Words in s. 390(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 612(2) (with Sch. 2)
F4Words in s. 390(5) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 154(3)(b)
F5Words in s. 390(5) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 154(3)(c)
F6Words in s. 390(5) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 154(3)(d)
F7Words in s. 390(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 612(3) (with Sch. 2)
F8S. 390(6) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 154(4)
Modifications etc. (not altering text)