Section 307 — Corporation Tax Act 2010: Overview of Chapter

Overview of Chapter 307 1 This Chapter entitles a company carrying on a ring fence trade, on making a claim in respect of an accounting period, to a supplement in respect of—

a qualifying pre-commencement expenditure incurred before the trade is set up and commenced, b losses incurred in the trade, and c some or all of the supplement allowed in respect of earlier periods.

2 Sections 308 to 314 make provision about the application and interpretation of this Chapter.

3 Sections 315 to 320 make provision about supplement in relation to expenditure incurred by the company—

a with a view to carrying on a ring fence trade, but b in an accounting period before the company sets up and commences that trade.

4 Sections 321 to 329 make provision about supplement in relation to losses incurred in carrying on the ring fence trade.

5 There is a limit (of 10 ) on the number of accounting periods in respect of which a company may claim supplement.

6 In determining the amount of supplement allowable, reductions fall to be made in respect of—

a disposal receipts in respect of any asset representing qualifying pre-commencement expenditure. b ring fence losses that could be deducted under section 37 (relief for trade losses against total profits) or section 42 (ring fence trades: further extension of period for relief) from ring fence profits of earlier periods, c relief given under sections 45, 45B, 303B, 303C and 303D for ring fence losses carried forward from earlier periods, d unrelieved group ring fence profits.