Corporation Tax Act 2010 section 356JG

Reduction of adjusted ring fence profits

Section 356JG provides for a company's adjusted ring fence profits for an accounting period to be reduced by the cumulative total amount of activated allowance for that period, ensuring the profits cannot be reduced below zero.

• A company's adjusted ring fence profits for an accounting period are reduced by the cumulative total amount of activated allowance, but cannot be reduced below zero.
• The cumulative total amount of activated allowance is calculated using the formula A + C.
• "A" represents the total of all amounts of activated allowance the company has for any cluster areas for the accounting period, or for reference periods within that accounting period.
• "C" represents any amount of activated allowance carried forward from a previous period.