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Chapter BKM304400

Document Cited in Related
Vincent
Published date19 July 2017
Record NumberBKM304400
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

Calculate of relevant profits under CTA10/S269CD Steps 5 to 7 (see BKM304300 for Steps 1 – 4)

Step 5 – Calculate relevant trading profits

If the banking company only has trading profits it takes the amount of relief available against total profits, as calculated at step 4 and deducts this from total profits at step 1, to arrive at the company’s relevant trading profits.

If the banking company has both trading and non-trading profits, it takes the amount of relief available against total profits, as calculated at step 4 and multiplies it by the proportion of total profits that are trading profits, as calculated at step 3. This will give an amount for the trading proportion of the relief against total profits, which is then deducted from the trading profits calculated at step 2. The resulting amount is the banking company’s relevant trading profits.

The company can use relevant carried-forward trading losses against 25 percent of this amount. (For accounting periods from 1 April 2015 to 31 March 2016 the company could use relevant carried-forward trading losses against 50 percent of this amount) (see BKM303200).

Step 6 – Calculate relevant non-trading profits

If the banking company only has trading profits it can ignore step 6.

If the banking company has both trading and non-trading profits, it takes the amount of relief available against total profits, as calculated at step 4, and multiplies it by the proportion of total profits that are non-trading profits, as calculated at step 3. This will give an amount for the non-trading proportion of the relief against total profits, which is then deducted from the non-trading...

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