Corporation Tax Act 2010 section 356JM

Adjustments

Section 356JM requires that when a company's adjusted ring fence profits change after the cluster area allowance rules have already been applied, all relevant calculations under Chapter 9 must be reworked accordingly.

• The section applies whenever there is any change to a company's adjusted ring fence profits for an accounting period after the cluster area allowance provisions have already taken effect in relation to those profits.
• All necessary adjustments must be made to the operation of the cluster area allowance rules, whether those adjustments relate to the profits themselves or to other aspects of the regime.
• This includes revisiting the reduction of adjusted ring fence profits that was originally calculated, to ensure it reflects the revised profit figure.
• It also includes recalculating any amount of activated allowance that was carried forward to later periods, so that the carry-forward figure remains correct in light of the amended profits.