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 £1,000m and non-ring fence profits of £5m. 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	(£1,000m)	£5m	£5m	CTA10\S37
31 March 2008	£10m	£15m	£25m	CTA10\S40
31 March 2007	£20m	£10m	£30m	CTA10\S40
31 March 2006	£25m	£15m	£40m	CTA10\S40
31 March 2005	£50m	£30m	£50m	CTA10\S42
31 March 2004	£100m	£50m	£100m	CTA10\S42
31 March 2003	£365m	£60m	£349m	CTA10\S42

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