Loan write-offs and current-period non-trading deficit claims

Last updated: 8 November 2026

Short version. Use this guide to enter a qualifying non-trading loan write-off or choose a current-period non-trading deficit claim. A qualifying debit enters the non-trading loan relationship calculation. A claim against this period’s profits is optional. Leave the claim blank for the calculated maximum, enter a smaller amount to claim part, or 0 to claim nothing now.

Go to the steps and entry details

On this page

CT600 boxes 260 and 795One or two returnsWhere you see it: Financial Data › Non-trading loan write-offs

What this option does

Use this guide to enter a qualifying non-trading loan write-off or choose a current-period non-trading deficit claim.

The accounts charge for a write-off stays in Depreciation and amounts written off assets. The write-off field identifies its qualifying Part 5 non-trading debit without adding it back twice.
The write-off field covers a qualifying impairment of a company’s loan receivable. A loan the director made to the company, a trading loan debit and a customer invoice bad debt use different treatments.
Box 795 reports the net deficit arising after taxable non-trading loan credits. Box 260 reports the current-period deficit used. Box 263 reports brought-forward relief used.

If your deficit comes from interest or exchange differences, keep those amounts in their existing fields and use Current-period deficit to claim. Leave Non-trading loan write-offs blank when there is no qualifying write-off.

Is this the right option for you?

Use it if all of these are true

You have a qualifying loan write-off in the accounts depreciation row, or a current non-trading deficit from interest, exchange differences or other qualifying debits.
Your prepared tax computation identifies the qualifying amounts and the claim you want to make.

Do not use it if

You need to classify a gain from a director waiving a loan owed by the company.Use instead: Director loan waivers
You only need to enter an opening deficit balance.Use instead: Brought-forward non-trading deficits

An accounting write-off alone does not establish tax relief. Connected-company impairment and releases are generally excluded, with statutory exceptions. Connection at any time in the accounting period matters. CTA 2009 section 321A excludes a release or write-off debit where the loan was subject to the participator-loan charge, including the extended rules. This is not every loan to a director or shareholder. Section 441 excludes the portion attributable to an unallowable purpose on a just and reasonable basis.

Common mistake: leaving the claim blank to preserve the deficit

Blank uses the maximum. To claim nothing now, enter 0 in Current-period deficit to claim. A smaller claim preserves only the unused balance. Do not move a loan write-off into interest payable to obtain relief.

Blank claim when intending to preserve it

Claim: Calculated maximum
Corporation Tax: £1,140

Explicit nil current-period claim

Claim: 0
Corporation Tax: £1,900

Worked example

Company: Rowan Example Ltd
Turnover: £10,000
Accounts depreciation and write-off charge: £4,000
Qualifying non-trading loan debit: £4,000

The company and all figures on this page are fictional.

The example assumes the whole debit qualifies, no loan credits and no other reliefs. The nil claim leaves the deficit unused. It does not create a trading loss.

Before you start

Accounts: Your prepared accounts. A write-off entered here must already be in the depreciation and write-off row, including any property depreciation
Tax classification: Qualifying whole-pound Part 5 debit and any taxable loan credits
Claim decision: Maximum, partial or nil for each return

The company and all figures on this page are fictional.

Step by step

Company Profile & Period
Accounting period
1 April 2025 to 31 March 2026
What are you filing?
HMRC CT600
Trading status
Active
What the company does
Trading
Financial Data
Previous year
Your previous accounts figures, or 0 where applicable
Turnover
£10,000
Cost of raw materials and consumables
0
Staff costs
0
Other charges
0
Depreciation and amounts written off assets
£4,000
+ Show all adjustment options
Open the additional adjustments
Non-trading loan write-offs
£4,000
Current-period deficit to claim
0Claim nothing now. Clear the amount to use the maximum instead.
Balance sheet
Your prepared balance sheet at the period end
Average number of employees
Your average number, or 0
Review & file
Corporation tax due
£1,900 .00
On taxable total profits of £10,000 at 19.0% · small profits

For a property-only company, use the gross figures in Property income and expenses and include the accounts charge in its depreciation row. Open the additional tax adjustments if the write-off option is collapsed. Enter the qualifying subset in whole pounds. Together with the Part 8 amortisation or impairment deduction, it cannot exceed the combined trading and property depreciation charge, rounded to the nearest pound. Review the calculated maximum and unused balance before filing. The review separates the actual current-period relief used from its signed reconciliation. Write-off figures marked as a memo are already included in the loan calculation.

A same-period claim may cover all or part of the deficit. The normal claim deadline is two years after the end of the deficit accounting period, subject to HMRC’s power to allow later claims. Current-period deficit relief takes priority over current trading and property loss relief. A smaller claim can leave tax unchanged where automatic trading or property loss relief uses the freed profits instead. Review which unused pool remains. This guide does not make a carry-back or group-relief claim.

Fictional company current-period non-trading deficit of £4,000, a maximum claim of £4,000, and an entered claim of 0. — An entered 0 claims none of this return’s current-period deficit. Clearing the claim restores the calculated maximum. Fictional figures.

Accounts periods over 12 months

Confirm which return receives the debit using the allocation beside Non-trading loan write-offs. The initial suggestion puts it all in return 1. Replace that suggestion with your prepared allocation. The accounts depreciation still follows the accounts split. With separate figures, enter each return’s own charge and qualifying subset.

Each return has its own current-period claim. Return 2 also receives the unused eligible balance from return 1. To preserve the whole balance, enter 0 in the current-period claim and the brought-forward claim on both returns. A zero brought-forward claim alone does not prevent return 2 from claiming its own new deficit.

Sample outcome

£10,000Taxable profits with the nil claim

£1,900Corporation Tax with the nil claim

£1,140Corporation Tax using the maximum current-period claim

Unused eligible amounts can carry forward subject to the statutory conditions. Using a carried-forward deficit against total profits needs a claim and has further conditions, including investment-business continuity. Where that business became small or negligible, a non-trading-profits-only route can apply. The deductions allowance restricts relief used against later profits. It does not cap the balance carried forward. This service’s existing brought-forward route does not cover every restricted pool.

Not the right option?

Open the guide for the option that matches your filings.

Non-trading loan relationship deficitsUnderstand the net debit and available reliefs.Brought-forward deficitsEnter an eligible opening balance and choose its claim.

Looking for a different field or step? See all filing wizard guides →

Official sources

More help:

Whether this route matches your filings is for you to decide, yourself or with your accountant.

Example companies and figures are fictional. Field names match the filing wizard as of 8 November 2026.