Corporation Tax Act 2010 section 220A

Carry forward of CITR

Section 220A allows an investor to carry forward any unused community investment tax relief (CITR) to a later relevant accounting period in which it is still entitled to relief in respect of the same investment.

• Where the CITR reduction for a relevant accounting period exceeds the corporation tax liability available to absorb it, the unabsorbed portion (the "excess amount") can be carried forward.
• The carry forward is available for each subsequent relevant accounting period in which the investor remains entitled to a CITR reduction under section 220 for the same investment.
• The investor must make a claim for carry forward relief in each subsequent period; it is not applied automatically.
• The amount carried forward and used in any later period is reduced by any part of the excess already absorbed in an earlier period, ensuring no double relief.