Corporation Tax Act 2009 section 1223

Carrying forward expenses of management and other amounts

Section 1223 deals with how a company with investment business can carry forward excess management expenses and certain other amounts that could not be deducted in the current accounting period.

• Where management expenses, qualifying charitable donations for the investment business, or amounts brought forward from earlier periods exceed the profits available for deduction, the excess carries forward to the next accounting period as deductible management expenses.
• The carry-forward does not apply to any part of the excess that is surrendered as group relief or group relief for carried-forward losses.
• To use the carried-forward excess, the company must make a claim — which may be for all or part of the excess — within two years after the end of the next accounting period (or a longer period if HMRC allows).
• Amounts may also remain undeducted because the corporate loss restriction rules or the management expenses restriction cap have limited the deduction available in the period.