Corporation Tax Act 2010 section 269ZW

Deductions allowance for company not in a group

Section 269ZW sets out the deductions allowance available to a company that is not a member of a group, including the standard allowance amount and how it is adjusted for short accounting periods.

• A standalone company (one that is not part of a group) receives a deductions allowance of £5,000,000 for a full 12-month accounting period.
• If the accounting period is shorter than 12 months, the £5,000,000 allowance is reduced proportionally to reflect the shorter period.
• This section only applies where the company is not subject to the group deductions allowance rules, which govern how the allowance is allocated among group members.
• Separate rules apply where a company does not have a source of chargeable income, which may further affect the deductions allowance available.