Corporation Tax Act 2010 section 356EB

Carrying forward of unactivated allowance

Section 356EB provides for unused onshore allowance to be carried forward to the next accounting period when a company's unactivated allowance exceeds its relevant income from a particular site.

• This section applies when a company's closing balance of unactivated allowance for a site exceeds its relevant income from that site for the same accounting period.
• The excess of unactivated allowance over relevant income is carried forward as onshore allowance for that site into the next accounting period.
• The carried-forward amount is treated as being held from the very beginning of the next accounting period.
• This mechanism ensures that allowance which has not been used against income in one period is not lost but remains available for future use.