Non trade loan relationships deficits

Non-trade Loan Relationships – Deficits enables you to analyse non-trade loan relationship deficits brought forward, brought back and arising in the current period.

We’ve made changes to accommodate the requirements of Finance (No. 2) Act 2017. Depending on when your company periods land, you’ll notice differences in the available fields on the Losses tab

You can now enter group relief surrendered for company periods commencing on or after April 2019.

Brought forward deficit Enter the total non-trade loan relationship deficit brought forward, even if you are not fully using it in the current period.
Set against current year non-trading income Enter the amount of Brought forward deficit to be used in the current period. If the amount you enter here is greater than the non-trading income for the period, then a warning will appear, advising you of this.
Carried forward This figure is calculated as Bought forward deficit less Set against current year non-trading income.

For periods starting after 1 April 2017, you’ll need to apportion the brought forward deficit.

Brought forward deficits arising pre 1 April 2017 may only be set against non-trade income.

Brought forward trade deficits arising on or after 1 April 2017 may be set against total profits, except in certain exceptional cases when they may only be set against non-trade income.

Brought forward deficit Enter the total non-trade loan relationship deficit brought forward, even if you are not fully using it in the current period.
Set against non-trading income Enter the amount of Brought forward deficit to be used in the current period. If the amount you enter here is greater than the non-trading income for the period, then a warning will appear, advising you of this.
Set against total profits Enter the amount of Brought forward deficit to be set against total profits. The amount set off cannot be greater than either Deficit brought forward or the total profits for the period.
Carried forward This figure is calculated as Bought forward deficit less Set against current year non-trading income.

For periods starting after 1 April 2017, you’ll need to apportion the brought forward deficit.

Brought forward deficits arising pre 1 April 2017 may only be set against non-trade income.

Brought forward trade deficits arising on or after 1 April 2017 may be set against total profits, except in certain exceptional cases when they may only be set against non-trade income.

 

Brought forward deficit Enter the total non-trade loan relationship deficit brought forward, even if you are not fully using it in the current period.
Set against non-trading income Enter the amount of Brought forward deficit to be used in the current period. If the amount you enter here is greater than the non-trading income for the period, then a warning will appear, advising you of this.
Set against total profits Enter the amount of Brought forward deficit to be set against total profits. The amount set off cannot be greater than either Deficit brought forward or the total profits for the period.
Group relief surrendered Enter the amount of brought forward non-trade deficit surrendered. A company cannot surrender a brought forward deficit if it has capacity to use the deficit against its own profits.
Carried forward This figure is calculated as Bought forward deficit less Set against current year non-trading income.
Deficit arising in period If the Net non-trade income/(deficit) at Non-trade Loan Relationships – Relationships shows a deficit, then the amount of that deficit appears here. Otherwise, the figure here is nil.
Current year deficit set-off against total profits Enter the amount of the current year deficit to be set against total profits. The amount set off cannot be greater than either Deficit arising in period or the total adjusted trading profits for the period.
Deficit available to carry back to previous year This figure is Deficit arising in the period not set off against total profits.
Amount claimed to be carried back to previous year If Deficit available to carry back to previous year is greater than nil, then enter here the amount of the available deficit that you are electing to carry back.
Carry forward Calculated as Deficit available to carry back to previous year, less Amount claimed to be carried back to previous year.
Deficit arising in period If the Net non-trade income/(deficit) at Non-trade Loan Relationships – Relationships shows a deficit, then the amount of that deficit appears here. Otherwise, the figure here is nil.
Set against total profits Enter the amount of the current period deficit to be set against total profits. The amount set off cannot be greater than either Deficit arising in period or the total profits for the period.
Deficit carried back to previous year If Deficit arising in period less Set against total profits is greater than nil, then enter here the amount of the available deficit that you are electing to carry back.
Carry forward Calculated as Deficit arising in period less Set against total profits and Deficit carried back to previous year.
Deficit arising in period If the Net non-trade income/(deficit) at Non-trade Loan Relationships – Relationships shows a deficit, then the amount of that deficit appears here. Otherwise, the figure here is nil.
Set against total profits Enter the amount of the current period deficit to be set against total profits. The amount set off cannot be greater than either Deficit arising in period or the total profits for the period.
Maximum available for group relief Enter the maximum amount of non-trade deficit available for surrender as group relief.
Group relief surrendered Enter the amount of non-trade deficit surrendered.
Deficit carried back to previous year If Deficit arising in period less Set against total profits is greater than nil, then enter here the amount of the available deficit that you are electing to carry back.
Carry forward Calculated as Deficit arising in period less Set against total profits and Deficit carried back to previous year.

Periods straddling 1 April 2017 are treated as two accounting periods in respect of profits and losses. The current period deficit carried forward is time-apportioned. Where just and reasonable the apportionment can be adjusted.

This figure is the sum of Brought forward deficit and Deficit arising in the period, less any amounts used in the current period.

Enter here the non-trade loan relationship deficit brought back from a subsequent period and allocated against the current period non-trade loan relationship income. This cannot be greater than the non-trade loan relationship income available to be offset.