Corporation Tax Act 2010 section 329

The reference amount for a post-commencement period

Section 329 explains how to determine the reference amount, which is the amount on which ring fence expenditure supplement is calculated, for a post-commencement period.

• The reference amount is the figure used to calculate post-commencement supplement under section 322.
• It is derived from the amount sitting in the company's ring fence pool.
• Before arriving at the reference amount, the ring fence pool must first be reduced for any utilised ring fence losses (section 327) and any unrelieved group ring fence profits (section 328).
• The reference amount is whatever remains in the ring fence pool after those required reductions have been made.