Corporation Tax Act 2010

[F1 329Q The onshore ring fence pool U.K.

(1) For the purpose of determining the amount of any post-commencement additional supplement, a qualifying company is to be taken at all times in its post-commencement periods to have a continuing mixed pool (the “onshore ring fence pool”) of—

(a) the company's onshore ring fence losses,

(b) post-commencement supplement under Chapter 5,

(c) post-commencement additional supplement under this Chapter.

(2) The onshore ring fence pool continues even if the amount in it is nil.

(3) The onshore ring fence pool consists of—

(a) the company's onshore ring fence losses, allocated to the pool in accordance with subsection (4)(a),

(b) the company's post-commencement supplement allowed under Chapter 5, allocated to the pool in accordance with subsections (4)(b) and (5) to (7), and

(c) the company's post-commencement additional supplement allowed under this Chapter, allocated to the pool in accordance with subsection (4)(c).

(4) The allocation to the pool is made as follows—

(a) the amount of an onshore ring fence loss is added to the pool in the period of the loss,

(b) if any post-commencement supplement is allowed on a claim under Chapter 5 in respect of a post-commencement period, the appropriate proportion of the amount of that supplement is added to the pool in that period, and

(c) if any post-commencement additional supplement is allowed on a claim under this Chapter in respect of a post-commencement period, the amount of that supplement is added to the pool in that period.

(5) “The appropriate proportion” is—

(a) if the ring fence trade carried on by the company includes, or has at any time included, offshore oil-related activities, such proportion of the supplement as it is just and reasonable to attribute (directly or indirectly) to the company's onshore oil-related activities carried on in the period for which the supplement is allowed or an earlier post-commencement period, and

(b) in any other case, 100%.

(6) In the case of a straddling period—

(a) the appropriate proportion of the post-commencement supplement allowed on a claim under Chapter 5 in respect of the period is apportioned between so much of that period as falls before 5 December 2013 and so much of it as falls on or after that date, on the basis of the number of days in each part, and

(b) only so much of the appropriate proportion of the supplement as is apportioned to the later period is added to the pool under subsection (4)(b).

(7) But if the basis of the apportionment in subsection (6)(a) would work unjustly or unreasonably in the company's case, the company may elect for the apportionment to be made on another basis that is just and reasonable and specified in the election

(8) The amount in the onshore ring fence pool is subject to reductions in accordance with the following provisions of this Chapter.

(9) If a reduction in the amount in the onshore ring fence pool falls to be made in any accounting period, the reduction is made—

(a) after the addition to the pool of—

(i) the amount of any onshore ring fence losses allocated to the pool in that period in accordance with subsection (4)(a), and

(ii) any amount of post-commencement supplement under Chapter 5 claimed in respect of the period and allocated to the pool in accordance with subsection (4)(b), but

(b) before determining and adding to the pool under subsection (4)(c) the amount of any post-commencement additional supplement under this Chapter claimed in respect of the period,

and references to the amount in the pool are to be read accordingly.]

Textual Amendments

F1 Pt. 8 Ch. 5A inserted (with effect in accordance with Sch. 14 para. 4 of the amending Act) by Finance Act 2014 (c. 26), Sch. 14 para. 1