Corporation Tax Act 2010 section 332E

Reduction of adjusted ring fence profits

Section 332E provides for a company's adjusted ring fence profits for an accounting period to be reduced by the cumulative total amount of activated allowance, ensuring the result cannot fall below zero.

• A company's adjusted ring fence profits for an accounting period are reduced by the cumulative total amount of activated allowance for that period.
• The reduction cannot bring the adjusted ring fence profits below zero.
• The cumulative total amount of activated allowance is calculated as A + C, where A is the total activated allowance across all qualifying oil fields for the accounting period or reference periods within it, and C is any amount carried forward from a previous period.
• Carried-forward amounts are brought into the calculation under the rules in section 332EA.