Corporation Tax Act 2010 section 315

Supplement in respect of a pre-commencement accounting period

Section 315 allows qualifying companies that incur ring fence trade expenditure before their commencement period to claim a pre-commencement supplement, and explains how that supplement is calculated and given effect.

• A qualifying company that incurs qualifying expenditure on a ring fence trade before the commencement period may claim pre-commencement supplement for one or more pre-commencement periods.
• Any supplement allowed is treated as a deductible expense of the commencement period when calculating the profits of the ring fence trade.
• The supplement for each pre-commencement period equals the relevant percentage of the reference amount for that period, reduced proportionally if the period is shorter than 12 months.
• The reference amount for a pre-commencement period is determined in accordance with sections 316 to 319.