For the purposes of the I-E rules, debits and credits on loan relationships, derivative contracts and intangible assets are deemed to be non-trading FA12/S88(2). The main practical consequence of this is that the rules for offsetting non-trading deficits, as described below, are more restrictive than for trading deficits.

Where, for a period, the total of BLAGAB loan relationships and derivative debits exceeds the total of BLAGAB loan relationship and derivative credits the excess is a single BLAGAB non-trading deficit.

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