OT21066 - Corporation Tax Ring Fence: Losses and Group Relief: Extended Carry Back for General Decommissioning and Terminal Losses - Example

For APE 31 Mar 2009, Company A made ring fence losses attributable to decommissioning expenditure of 拢1,000m and non-ring fence profits of 拢5尘. The results of earlier APs and the loss relief available are as follows:

APE Ring Fence Non-ring fence Loss relief Allowed under
31 March 2009 (拢1,000尘) 拢5尘 拢5尘 CTA10\S37
31 March 2008 拢10尘 拢15尘 拢25尘 CTA10\S40
31 March 2007 拢20尘 拢10尘 拢30尘 CTA10\S40
31 March 2006 拢25尘 拢15尘 拢40尘 CTA10\S40
31 March 2005 拢50尘 拢30尘 拢50尘 CTA10\S42
31 March 2004 拢100尘 拢50尘 拢100尘 CTA10\S42
31 March 2003 拢365尘 拢60尘 拢349尘 CTA10\S42

Total relief given is 拢599m, leaving ring fence losses available to carry forward of 拢401m.