Section 356JKB — Corporation Tax Act 2010: Effect of transfer of allowance for transferee

Effect of transfer of allowance for transferee 356JKB 1 Where a transfer of cluster area allowance is made under section 356JK, each transferee is treated as generating in the cluster area concerned, at the beginning of the accounting period or reference period of the transferee that begins with the day on which the disposal is made, cluster area allowance of the amount given by subsection (2).

2 The amount is— T × E3 E1 − E2 where— T is the total amount of cluster area allowance transferred in connection with the disposal; E3 is the share of equity in the licensed area or sub-area that the transferee has acquired from the transferor; E1 and E2 are the same as in section 356JK(5).

3 In this section references to the transferor and the transferees are to be read in accordance with section 356JK(1).