Corporation Tax Act 2010

[F1 356NI Deductions allowances where company has contractor's ring fence profits U.K.

(1) This section applies if a company (“C”) has contractor's ring fence profits for an accounting period.

(2) Subsections (3) to (6) set out how to determine, for the accounting period—

(a) C's deductions allowance for the purposes of Part 7ZA (restrictions on obtaining certain deductions), and

(b) C's contractor's ring fence profits deductions allowance.

(3) Determine in accordance with Part 7ZA what C's deductions allowance for the period would be in the absence of this section (and call this “amount A”).

(4) Determine C's contractor's ring fence profits deductions allowance for the period in accordance with subsection (5).

(5) C's “contractor's ring fence profits deductions allowance” for an accounting period—

(a) is so much of amount A as is specified in C's company tax return as its contractor's ring fence profits deductions allowance for the period, and

(b) accordingly, is nil if no amount is so specified.

(6) Subsection (7) applies if a relevant reversal credit is brought into account in calculating C's contractor's ring fence profits for the accounting period.

In this subsection the reference to bringing into account a relevant reversal credit is to be interpreted in accordance with section 269ZY.

(7) C's contractor's ring fence profits deductions allowance for the accounting period (as determined in accordance with subsection (5)) is to be treated for all purposes as increased by—

(a) the amount of the relevant reversal credit, or

(b) if lower, the amount of the contractor's ring fence profits for the accounting period.

(8) C's deductions allowance for the period for the purposes of Part 7ZA is to be taken to be an amount equal to amount A less the amount of C's ring fence profits deductions allowance for the period.]

Textual Amendments

F1 Ss. 356NH-356NJ and cross-heading inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 59