Corporation Tax Act 2010 section 356DA

Carrying forward of activated allowance

Section 356DA provides that where a company's cumulative activated onshore allowance exceeds its adjusted ring fence profits in an accounting period, the unused portion is carried forward to the next accounting period.

• Applies where a company's cumulative total of activated allowance is greater than its adjusted ring fence profits for an accounting period
• The excess amount (the difference between activated allowance and adjusted ring fence profits) is carried forward to the next accounting period
• Ensures that onshore allowances are not lost simply because there are insufficient profits in a given period to use them
• The carried-forward amount becomes available to reduce the supplementary charge on ring fence profits in future periods