Corporation Tax Act 2010 section 356JHA

The closing balance of unactivated allowance for an accounting period

Section 356JHA sets out how to calculate the closing balance of unactivated cluster area allowance held by a company for a given accounting period and cluster area.

• The closing balance of unactivated allowance is calculated using the formula P + Q.
• P is the cluster area allowance generated by the company in the cluster area during the accounting period, including any allowance treated as generated following a transfer from another company.
• Q is any unactivated allowance carried forward from the immediately preceding accounting period or from the immediately preceding reference period.
• The closing balance therefore combines newly generated allowance with any unused allowance brought forward from the prior period.