Corporation Tax Act 2010 section 356JGA

Carrying forward of activated allowance

Section 356JGA provides that where a company's cumulative activated cluster area allowance exceeds its adjusted ring fence profits in an accounting period, the excess is carried forward to the next accounting period.

• Applies when a company's cumulative total of activated cluster area allowance is greater than its adjusted ring fence profits for an accounting period
• The excess amount (the difference between the activated allowance and the adjusted ring fence profits) is not lost
• The unused portion is automatically carried forward to the next accounting period
• This ensures that allowances which cannot be fully utilised in the current period remain available to reduce future supplementary charge liabilities