Corporation Tax Act 2010 section 356JJB

Carry-forward of unactivated allowance from a reference period

Section 356JJB provides for the carry-forward of unused cluster area allowance from one reference period to the next, after deducting any allowance that has been activated or transferred out following a disposal.

• At the end of a reference period, any unactivated cluster area allowance remaining after subtracting activated allowance and transferred amounts is carried forward to the next period.
• The carry-forward amount is calculated as: total unactivated allowance (U), minus activated allowance (A), minus any amounts transferred out on disposal (T).
• If the result of U minus A minus T is greater than zero, that positive amount is treated as cluster area allowance held by the company for the next period.
• The "next period" is the immediately following reference period for the same cluster area if one exists; otherwise, it is the company's next accounting period.